Business Wire

Sales Growth, but Weaker Profitability for Jotun

Jaa

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.”

Investments

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.

Mobile workforce

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)

 

2017

 

2016

 

Change

Operating income 16 401 15 785 +4%
Operating profit 1,354 1,763 -23%
Profit before tax 1,236 1,594 -23%
 

Contact information

Jotun
Morten Fon
President & CEO
Mobile +47 909 19 822
or
Christian Espolin Johnson
Group Communications Director
Mobile +47 976 45 494

Tietoja julkaisijasta

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 jo ennen kuin ne uutisoidaan? Kun tilaat tiedotteemme, saat ne sähköpostiisi yhtä aikaa suomalaisen median kanssa. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

IFF Strengthens Innovation Platform as Partner in Amkiri’s Visual Fragrance™ Technology24.5.2018 23:15Tiedote

Regulatory News: International Flavors & Fragrances Inc. (NYSE: IFF) (Euronext Paris: IFF), a leading innovator of sensory experiences that move the world, announced its partnership in Amkiri’s Visual Fragrance Technology -- a new ‘ink’ that can be drawn on the skin that also delivers a long-lasting fragrance, thus connecting the senses of sight and smell. The innovative product’s launch was announced on March 22, 2018 by Amkiri, an Israeli-based start-up that was founded in 2014. “This is a significant innovation in the fragrance category, merging strong and deeply personal visuals with the resonance and emotion of fragrance,” said IFF Chairman and CEO Andreas Fibig. “The Visual Fragrance technology creates a new platform from which IFF can showcase our capabilities, including naturals, molecules, and cosmetic actives. The potential for innovative applications are nearly endless and our teams are truly inspired by the possibilities.” Amkiri’s patented Visual Fragrance is applied to th

Hisense's Zhou Houjian and Huawei's Kevin Ho to Keynote CES Asia; Focus on Mobility, 5G and Connectivity24.5.2018 18:00Tiedote

The Consumer Technology AssociationTM (CTA) today announced that Hisense Chairman Zhou Houjian and Huawei’s president of Handset Product Line Kevin Ho will deliver separate keynote addresses at the upcoming CES AsiaTM 2018. As CES Asia drives the expansion of technology into new areas like artificial intelligence, vehicle technology, AR, VR and more, Chairman Zhou and Mr. Ho will discuss the future of innovation at their respective companies through connectivity and mobility during Asia’s premier tech event. “Hisense and Huawei have become major global brands by challenging the status quo and creating innovative product solutions that engage, entertain and connect consumers around the world,” said Gary Shapiro, president and CEO, CTA. “We are thrilled to welcome Chairman Zhou and Mr. Ho to the CES Asia keynote stage and are eager to learn from these experts who are leading the charge to harness the potential of 5G through various implementation strategies and connection opportunities.”

Maximum Cryptocurrencies Available for EU Traders in Libertex24.5.2018 17:29Tiedote

Libertex trading platform, operated by Indication Investments Ltd, announces that starting from May 23rd 2018, European traders can perform operations with 34 new cryptocurrency CFD instruments. This means that Libertex became one of the leading applications and trading platforms for EU traders in terms of amount of cryptocurrencies available. Andrew Nikolaev, Libertex Executive director highlighted: “Cryptocurrencies are one of the main trends in financial industry for the past couple of years. The demand for these assets grows significantly. We are happy to satisfy the demand of European traders for new innovative crypto-instruments launching them in our cutting edge Libertex platform”. Launch of cryptocurrency pairs in Libertex for EU traders follows Circular from Cyprus financial regulator - CySec issued on May 15th 2018, that introduces new rules for governing derivatives on virtual currencies. According to this Circular, CFDs on virtual currencies are considered as financial inst

Andersen Global’s Middle East Expansion Continues with Solutions Bridge in Kuwait24.5.2018 16:30Tiedote

Solutions Bridge, an Accounting and Corporate Secretarial Services firm in Kuwait City, has signed a Collaboration Agreement with Andersen Global. The addition of a location in Kuwait demonstrates Andersen Global’s growth in the Middle East, which is a significant market for the organization. “Having a strong practice in Kuwait is important to our regional success and this is an extraordinary opportunity to continue providing best-in-class services globally,” commented Mark Vorsatz, Global Chairman and Andersen Tax LLC CEO. “There are many changes in the Middle East currently and the development of tax laws is a major factor in the region. The addition of Solutions Bridge, one of the largest accounting firms in Kuwait, positions us for continued opportunities for expansion.” Formed by former professionals of Andersen in Kuwait, Solutions Bridge is led by Partner Fouad Al Hourani. The firm provides accounting and corporate secretarial services for both individuals and corporations in a

Workiva Signs OEM Agreement with SAP to Offer SAP® Cloud Platform Integration with the Workiva Wdesk Platform24.5.2018 16:00Tiedote

Workiva (NYSE:WK), a leader in cloud-based data collaboration, reporting and compliance solutions, today announced it has signed an original equipment manufacturer (OEM) agreement with SAP (NYSE:SAP). Through this agreement, Workiva is partnering with SAP to provide a first-party integration with the Wdesk platform using the SAP® Cloud Platform Integration service. The bundled solutions are expected to provide customers with powerful linking, auditability and control features. “Today’s announcement demonstrates that Workiva and SAP are committed to providing customers with a rich integration experience,” said Matt Rizai, chairman and CEO of Workiva. “Through our OEM partnership, we will help customers all over the world improve the value of their business data.” After users integrate their SAP business data directly into the Wdesk platform, they can benefit from the full capabilities of Wdesk, including synchronized data, dynamic commentary, controlled collaboration, granular permissio

M-Brain Appoints New CEO24.5.2018 15:25Tiedote

M-Brain, a global leader in market and media intelligence solutions, has appointed Christian Cedercreutz Chief Executive Officer as of 13.8.2018. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180524005676/en/ M-Brain, a global leader in market and media intelligence solutions, has appointed Christian Cedercreutz Chief Executive Officer as of 13.8.2018. (Photo: Business Wire) Christian holds a Master of Economics degree from Hanken School of Economics in Helsinki. His career has been built with IBM over the past 20 years, in which he has held various management positions in five different European countries. Christian brings strong consultative selling experience and has over the years worked across the IBM Corporation in roles such as leading global client relationships, and leading SW and HW technology businesses in Finland. His most recent role has been to lead the cognitive SW solutions (Watson) business in Finland. Simu

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