"We are happy with the continuous sales growth and EBITA development after a challenging 2011," said Morten Fon, president and CEO of Jotun.
Total net sales in the first eight months of 2012 were NOK 7,686 million for the paints and coatings company, while earnings before interest, tax and amortization (EBITA) were NOK 888 million in the period.
"Our success in this period is a result of continuous strong growth, some ease in raw material inflation, but also good pricing and product mix management," said Fon.
The sales growth is mainly driven by the strong performance of decorative paints and protective coatings in Scandinavia, the Middle East and South East Asia.
The Marine segment has had sales growth despite tough market conditions, especially in newbuilding of ships. The Powder Coatings segment also shows a healthy development in the period both in sales and margins.
Jotun is expanding with new operations in Cambodia, Morocco, Algeria, Myanmar and Bangladesh.
Jotun has made major investments in its new factory in Norway, as well as ongoing construction of new factories in China, the US, Russia and Brazil. Other sizable investments have been new land and a warehouse in Vietnam, and a new regional service centre in Dubai. Total investments in 2012 have so far amounted to NOK 402 million.
After increasing raw material prices last year, price inflation is stabilizing, and supply is good: "The raw material market has become more balanced. This is good news for Jotun, as raw materials are a substantial part of our cost base," added Fon.