Citation
(2003), "Record profit for Jotun", Pigment & Resin Technology, Vol. 32 No. 4. https://doi.org/10.1108/prt.2003.12932dab.021
Publisher
:Emerald Group Publishing Limited
Copyright © 2003, MCB UP Limited
Record profit for Jotun
Record profit for Jotun
“The Jotun group recorded sales of NOK 5,580 (1 EUR=7,95 NOK) million in 2002, down NOK 235 million on 2001,” reports CEO Knut Almestrand. “Pre-tax profit rose from NOK 157 million in 2001 to NOK 462 million and was the best in Jotun’s history.” The decrease in sales was due to the strength of the NOK against the USD and other currencies used by Jotun’s international businesses. Sales in volume terms were 6.5 per cent up on 2001. The sharp increase in earnings was due to partly substantial provisions for restructuring in 2001, but the results for 2002 also include an increase of almost NOK 100 million in ordinary profit on underlying activities.
There were considerable variations in earnings in 2002. Decorative products performed well in most markets. There were improvements for marine coatings and corrosion-protective coatings for industrial and offshore use, but profitability in these segments is still not good enough, especially in the case of marine coatings. Jotun Powder Coatings has carried out a major turnaround operation and reported satisfactory results for 2002 after several poor years. In recent years, a great deal of work has been put into increasing efficiency and competitiveness, and Almestrand expects these measures to result in further improvements. However, 2003 has got off to an uncertain start with several weak signals in the international markets. Provided that activity levels are not influenced too strong, Jotun’s target is to repeat last year’s earnings in 2003.