Sales Growth, but Weaker Profitability for Jotun
Jotun had a turnover of NOK 16 401 million in 2017, an increase of four per cent compared to 2016. At the same time, operating profit ended at 1 354 million, a decrease of 23 per cent. A sharp rise in raw material prices is the main reason for the decline in earnings.
Weak demand for the construction of new vessels and offshore installations weakened sales of Jotun marine and protective coatings, but these losses were partly offset by good growth in the maintenance markets. Sales of Jotun Powder Coatings were impacted by economic downturns in some key markets, while the Decorative Paints segment continues to deliver solid growth.
According to CEO and President, Morten Fon, overall sales growth for the Group is four percent, while volume increased by 10 percent. “Solid growth in the Decorative Paints segment was a welcome contributor to Jotun's results in 2017, especially in South East Asia and the Middle East,” he says. "With persistent difficult markets for newbuilding projects in the shipping and offshore industries, we are satisfied with our good results in the maintenance markets. This shows that our organisation is flexible enough to adapt when market conditions change.”
Rising costs of raw materials
The price of raw materials rose steadily throughout 2017. At present, raw materials are about 20 per cent higher than at the same period time last year. This has had a negative impact on Jotun's profits. "Raw materials make up a considerable share of our costs, so rising prices have a significant impact on our profitability,” says Fon. “As this cost trend is expected to continue in 2018, we will have to implement price increases on Jotun products in the months to come.”
Jotun continues to invest to support the company’s organic growth strategy. In 2017, the company invested NOK 967 million, representing six percent of revenue. The largest investments are related to new production facilities in Malaysia, Myanmar and the Philippines and Jotun’s new headquarters and R&D Centre in Norway.
Jotun expects significant growth in the years to come, requiring more employees and programmes to develop their competence, leadership skills and to further strengthen Jotun’s corporate culture. In recent years, Jotun has launched several internal mobility programmes to facilitate more cooperation between business areas, countries and functions.
Jotun's mobile workforce has more than doubled since 2013. In 2017, Jotun’s mobility programme circulated employees representing more than 20 different nationalities to around 30 countries. "Providing more employees with international experience will help Jotun operate successfully in the many different markets where we are active, and support our growth in new markets in the future,” says Fon. “At the same time, we must continue to build and strengthen our corporate culture to ensure that our growth remains consistent with our company values.”
Financial key figures (NOK million)
|Operating income||16 401||15 785||+4%|
|Profit before tax||1,236||1,594||-23%|
President & CEO
Mobile +47 909 19 822
Christian Espolin Johnson
Group Communications Director
Mobile +47 976 45 494
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Tilaa tiedotteet sähköpostiisi
Haluatko tietää asioista ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.
Lue lisää julkaisijalta Business Wire
Grand Prize Winner in $1.75M Water Abundance XPRIZE Announced at XPRIZE Visioneering 201822.10.2018 20:49 | Tiedote
During Visioneering 2018, XPRIZE’s annual gathering of philanthropists and innovators to evaluate concepts for future competitions, the Foundation revealed the results of its latest, completed XPRIZE. The Skysource / Skywater Alliance was announced as the grand prize winner of the $1.75M Water Abundance XPRIZE, a two-year competition aimed at alleviating the global water crisis with energy-efficient technologies that harvest fresh water from thin air. In addition at Visioneering, five new prize concepts were evaluated with top honors going to a prize concept called “Coral Survival”, a prize designed to protect and restore coral reefs. This prize will move forward into the XPRIZE pipeline. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181022005795/en/ The Skysource / Skywater Alliance team, based in Venice Beach, California, wins the Water Abundance XPRIZE (Photo: Business Wire) The Water Abundance XPRIZE, powered by the Tat
Positive Trial Results with Filgotinib in Psoriatic Arthritis and Ankylosing Spondylitis Both Published in The Lancet22.10.2018 20:15 | Tiedote
Gilead Sciences, Inc. (Nasdaq: GILD) and Galapagos NV (Euronext & NASDAQ: GLPG) today announced that detailed results from two clinical trials evaluating filgotinib, an investigational, selective JAK1 inhibitor, for the treatment of psoriatic arthritis and ankylosing spondylitis were both published in The Lancet. The publication of the Phase 2 EQUATOR data also coincides with a plenary session presentation at the 2018 American College of Rheumatology/Association of Rheumatology Health Professionals (ACR/ARHP) Annual Meeting. “The results of the EQUATOR and TORTUGA studies demonstrate that filgotinib improved the signs and symptoms of patients with psoriatic arthritis whose disease had not responded to prior therapies and independently, for those with ankylosing spondylitis,” said John McHutchison, AO, MD, Chief Scientific Officer and Head of Research and Development, Gilead Sciences. “These findings represent an important step forward in our efforts to improve outcomes for people livin
First Data Polska Deploys Inside Secure’s Mobile Payment Technology To Securely and Easily Connect to Mastercard and Visa22.10.2018 18:36 | Tiedote
Regulatory News: Inside Secure (Paris:INSD) (Euronext Paris: INSD), at the heart of security solutions for mobile and connected devices, today announced that First Data Polska S.A., a division of the global leader in commerce-enabling technology, selected Inside Secure technology to enable secure and flexible connections to Mastercard and Visa. First Data Polska S.A. chose Inside Secure’s Mobile Payment Client to easily integrate their solution with the Visa Token Service (VTS) and Mastercard Digital Enablement Service (MDES) – today’s major tokenization services that convert sensitive data into unique tokens that allow mobile payments to be processed. “Security and reliability are continual requirements for our services,” said Jolanta Rycerz, Member of Management Board at First Data Polska S.A. “We see Inside Secure as a valuable technology provider that enables us to easily migrate to the latest mobile payment technology and security standards. Thanks to Inside Secure, our customers,
PMI Launches Search for Next President and CEO22.10.2018 17:00 | Tiedote
Project Management Institute (PMI), the world’s leading professional membership organization for project managers, announced today that it has retained Heidrick & Struggles to help the organization find its next President and Chief Executive Officer (CEO). The dynamic leader shall oversee the implementation of a new strategic plan and guide the organization toward a future designed to help thousands of project professionals around the world accelerate their careers and make ideas a reality. Heidrick & Struggles is a premier provider of executive search, leadership assessment and development, organization and team effectiveness, and culture shaping services globally. PMI will conduct a comprehensive global review of both internal and external candidates for this key position. The selected candidate will embody PMI’s core values and possess the skillsets necessary to advance the organization’s key goals. PMI’s next President and CEO will help it execute a bold new multi-year initiative d
E2open to Acquire INTTRA, Adding the World’s Leading Ocean Shipping Network and Software Provider, Creating an Integrated Global Supply Chain and Logistics Operating Network22.10.2018 16:43 | Tiedote
E2open, the one place in the cloud to run your supply chain, today announced the acquisition of INTTRA, the leading ocean shipping network, software and information provider. The combination of INTTRA’s ocean carrier and shipper network with E2open’s industry leading business network will create a unified global logistics and supply chain network. E2open and INTTRA will join efforts to strengthen the connections and streamline the information flow between manufacturers, suppliers, shipping service providers, ocean carriers and all the participants in global trade. E2open is the largest cloud-based provider of networked supply chain solutions, featuring a complete portfolio of applications that enable the world’s most complex supply chains to better plan, collaborate, and execute their end-to-end operations. More than 70,000 partner companies and 200,000 users, many of the biggest brands and manufacturers across a range of industries, use the E2open network and platform to orchestrate t
Patient-Data Platform Raremark Raises £3m to Enable Precision Medicine in Rare Disease22.10.2018 15:00 | Tiedote
Raremark, the leading patient-data platform in rare disease, has raised £3m in funding from investors, led by AlbionVC and Ananda Ventures, with participation from Oltre Venture and from existing major investor the Cass Entrepreneurship Fund. The funding will be used to develop Raremark’s patient-engagement and data-analysis technology, helping biopharmaceutical companies to identify, engage and learn from patients, accelerating the development of new treatments. Raremark’s platform is the foundation for building research networks of rare disease patients and their families. Raremark provides biopharmaceutical companies with access to anonymized and aggregated patient data, helping to reduce the time and cost of clinical development. The Raremark platform engages and retains patients, leveraging machine-learning technologies in novel ways. The approach is designed to raise health literacy and informed participation in medical research, to improve the quality of existing therapies and t
Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.Tutustu uutishuoneeseemme