Jotun Reports Record Year
Friday, September 30, 2005
The Jotun Group will probably match last year's
record results. At the end of the first 8 months of the year the Group's
operating income totalled NOK NOK 4 619 million. Not only was this NOK 359
million up on the same period last year, but the operating income is equal
to last year, despite unfavourable exchange rate developments and the
continuing high price of raw materials.
The performance is in line with last year, which was the best year ever
recorded by Jotun. – We are satisfied with the strong organic growth in
sales, both in volume and value, says CEO Knut Almestrand, also pointing
out that the stronger NOK and the continuing high price of raw materials
are contributing to the pressure on margins.
At the end of August the operating profit was at NOK 476 million, an
increase on last year's corresponding figure of NOK 468 million. Due to
higher financial costs the pre-tax profit fell to NOK 450 million, down
from NOK 464 million in 2004.
In order to meet the increasing demand for Jotun's products, Jotun will
continue to invest in new and existing production facilities. Group
investments in the first 8 months of the year amounted to NOK 244 million,
against NOK 132 million in the same period last year related to a number
of projects for upgrading existing production facilities and the
construction of new production units in China and Indonesia.