News Column

Continued growth for Jotun in 2013

February 18, 2014

ENP Newswire - 18 February 2014

Release date- 17022014 - The Jotun Group increased sales of paints and coatings by six per cent last year, ending with operating revenues of more than NOK 12 billion in 2013.

President and CEO Morten Fon

Operating profit increased by 12 per cent to NOK 1.26 billion in 2013, compared with NOK 1.13 billion in 2012. The increase was mainly due to growth in Eastern Europe, South East Asia and parts of the Middle East.

Stable raw material prices, improved product mix and increased focus on the sale of high-quality products in higher margins markets contributed to the positive development in operating profit.

In 2013 Jotun achieved good growth in decorative paints, protective coatings and powder coatings, while sales of marine coatings in the Group's joint ventures operation in North East Asia reduced as a result of the cyclical downturn in the shipbuilding industry.

'We are delighted that Jotun has completed yet another strong year of solid sales and good earnings. 2013 has also been a year of large investments in new and existing markets, including new factories in Russia, China and Brazil,' says CEO Morten Fon.

Promises well for 2014

'Jotun is well positioned in the most important growth economies. Based on our organic growth strategy, this will contribute to further sales increases. By ensuring increased capacity and developing personnel and systems that can handle this growth effectively, Jotun is well equipped for the future,' says Fon.

Highlights of 2013:

Good profitability, especially considering the downturn in the shipbuilding industry.

Gross margins strengthened in all segments, mainly by means of good control of the price and product mix.

Jotun's investments in 2013 amounted to NOK 733 million. The biggest investments relate to building factories and facilities in Russia, China, Brazil and Vietnam.

Key financial figures (NOK million)

2013 2012 Change

Operating revenues 12,034 11,350 6%

Operating profit 1,258 1,126 12%

Profit before tax 1,191 1,055 13%

For further information:

Morten Fon, CEO, mobile: (+47) 909 19 822

Sverre Knudsen, Group Communications Director, mobile: (+47) 906 32 035

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Source: ENP Newswire

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