The company reported operating revenues of NOK10.7 billion (~USD1.9 billion) in 2011, up from NOK 9.8 billion (~USD1.7 billion) the previous year. Meanwhile operating profit was NOK956 million (~USD169 million) in 2011, compared with NOK 1,240 million (~USD219 million) in 2010, due mainly to higher raw materials prices.
Jotun said it sold more paint in volume and value terms in 2011 than in 2010. Margins and profits were affected by high costs of major raw materials such as epoxies, titanium dioxide, acrylics and metals.
Jotun's strategy of operating across a range of segments and geographies continues to yield results with higher sales in parts of Asia and the Middle East that offset slower sales in Europe.
"Jotun's business model has proven to be remarkably resilient and the group has had a satisfactory performance in an otherwise challenging year," said Morten Fon, Jotun's president and CEO. "Indeed, we managed to grow our sales in a number of important markets, despite a number of unexpected events in the global economy. High raw materials prices remain a challenge for us and the industry as a whole."
Jotun made considerable investments in 2011, and major projects during the year included: new production structure and construction of a new factory in Sandefjord; a new factory in Malaysia; ongoing construction of new factories and buildings in China and the United States; factory expansion in the UK; purchase of land in Russia and Indonesia; world-wide implementation of new business support information technology.
"Jotun is in a good position to continue its long-term growth trend, in spite of challenges in the global economy," said Fon. "The group has a solid business model with a differentiated regional and segment approach, and sound financial foundation which enables further investment in line with its proven organic growth strategy."
The Jotun Group is one of the world's leading manufacturers of paints, coatings and powder coatings. The group has 70 companies and 38 production facilities on all continents. Including the total network of legal companies, agents, branch offices and distributors Jotun is represented in more than 80 countries. Jotun's operations cover development, production, marketing and sales of various paint systems and products to protect and decorate surfaces in the residential, shipping and industrial markets. The Jotun Group has today 7,800 employees with its headoffice located in Sandefjord, Norway.