Adjusted for currency effects, Jotun’s underlying sales growth reached 10 percent, supported by sales growth in Decorative Paints, Protective Coatings and Powder Coatings. In particular, Jotun recorded strong improvement in the sale of protective coatings after a prolonged period of demanding market conditions. The sale of marine coatings continues to be impacted by the decline in the global shipping market.
According to President and CEO Morten Fon, the company sees clear signs of improvement in the shipping market.
“For example, we have signed significantly more new construction contracts so far this year than previously,” he said. “In oil and gas, market conditions are still challenging, but we are confident we have reached the bottom and that we will see a positive development over time.”
Due to lower margins related to higher raw material prices, Jotun’s earnings declined from 1291 million during the same period in 2017 to 1154 million in 2018. "Although there are signs that raw material prices are stabilizing, it will be necessary to raise prices on products to compensate for a long period of rising costs," Fon said.
Total investments amounted to NOK 589 million in the first eight months of the year (2017: 607 million). This represents about five percent of revenue and is in line with Jotun's strategic ambitions. Most of the investments are linked to the ongoing construction of the company’s new headquarters and research center in Norway, as well as investments for added capacity in Vietnam and Egypt.