Jotun generated sales of approximately $519.5 million in the second quarter compared to approximately $527 million for the same period in 2002. The company said it was affected by “stagnation in the global markets,” and results in all three divisions were lower compared to last year. CEO Knut Almestrand said that based on the economic developments this year, the expected result for the group for 2003 will be lower than last year.
At Jotun Paints, sales volume was up, however turnover was somewhat lower than last year and earnings were not satisfactory, according to the company. Officials said performance was especially weak in the European operations.
While Jotun Marine Coatings showed some growth during the period, the marine coatings market was still weak. Prices were subject to constant pressure, and the downturn was evident in areas such as Europe, the U.S. and Australia. Decorative paints had growth in the Middle East and Southeast Asia, contributing significantly to the total result for the division.
Sales of Jotun Dekorativ in Scandinavia were also weaker. In particular, sales of exterior paints fell, but Jotun said it increased its Norwegian market share during this period of decline. In addition, the company said that growth in Denmark and Sweden stagnated this year. However, considerable improvements were made in service levels, and the division is now considered to have satisfactory delivery abilities.
At Jotun Powder Coatings, sales volume was somewhat lower than last year. The decline was noticeable in Scandinavia and Europe where a number of powder coating users moved their operations to low-cost countries. In Asia, mature industrial markets such as Japan, Singapore and Malaysia saw operations move to lower-cost countries such as China and Vietnam.