SANDEFJORD, Norway--(BUSINESS WIRE)--Jotun recorded a nine per cent growth in operating revenues in the first four months of 2012 as sales increased both in volume and value terms.

In the first four months of 2012 the Jotun Group recorded operating revenues of NOK 3 784 million, up from NOK 3 482 million in the same period last year. The group’s profit for the period rose to NOK 295 million, from NOK 261 million in the first four months of 2011.

Key operational highlights

• Sales growth in all four divisions
  • Excellent results for Paints division in the Middle East and South East Asia
  • Improved results for the divisions Dekorativ and Powder Coatings
  • Reduced results in Coatings division
• Gross margin improved
• Opened new state-of-the art factory in Sandefjord

All of Jotun’s four divisions reported higher operating income during the period.

• Strong sales growth in the Paints, the group’s second largest in terms of revenues, was driven by robust performances in Saudi Arabia, Oman, UAE, Pakistan, Indonesia, Malaysia and Thailand.
• In the Dekorativ, sales rose across the exterior, interior and professional segments, supported by all-time-high sales in Sweden, and growth in Denmark and Scanox, as well as for Jotun Brands. The division inaugurated the new factory in Sandefjord, which is also Jotun’s single largest investment to date.
• Coatings recorded higher sales, but growth was offset by a drop in profits and a decline in margins, due to challenging economic conditions in Europe and reduced activity in other select markets. The shipping industry is experiencing over-capacity issues, which have depressed freight rates and slowed new orders, which has impacted the Marine Coatings segment.
• Powder Coatings saw sales rise sharply in the Middle East and increase in South East Asia. Meanwhile, the division experienced lower sales in Central Europe, and operations in Norway remained loss-making.

Solid financial position

Jotun’s equity ratio was at 50 per cent at the end of the reporting period. The company had sufficient liquidity and little net interest bearing debt.

Morten Fon, Jotun’s CEO, comments:

“We have had a satisfactory start to the year in terms of both sales and profitability. Strength in decorative paints offset challenges seen in marine coatings, and slow economic development in Europe has been outweighed by growth in other geographies, showing the resilience of Jotun’s business model in the face of challenging global economic conditions.

Ahead, we expect continued sales growth based our established presence in key growth economies, and earnings may show signs of improvement as raw material prices stabilise and pricing measures take effect.”