Jotun Announces Strong Results

The Jotun group has four profitable months behind it and concludes the period with higher turnover, higher volumes and higher profits than for the same period in 2005.

"It is pleasing to see turnover continue to increase in 2006 as well, and the profit for the first four months bodes well for the rest of the year," said Morten Fon, President and CEO of the Jotun group.

The positive developments from 2005 have continued in 2006, and during the first four months of the year Jotun had sales and operating income of NOK 2.4 billion, NOK 333 million higher than for the same period in 2005. The group's ordinary profit before tax was NOK 220 million, compared with NOK 163 million in 2005.

"Volumes are increasing, but a strong kroner in relation to the Euro and the USD together with the continued high raw material prices are still squeezing profitability in our core areas," says Fon.

Jotun is seeing an increasing demand for products and will therefore continue to invest in different markets. The group's investment totaled NOK 63 million in the first four months and the company has opened factories in countries such as China and Yemen.

"We are satisfied with the result at the end of the first four months and the group's turnover has increased. Despite the strong kroner and high raw material prices, Jotun is containing its costs at an acceptable level, and our focus on organic growth means we expect satisfactory earnings in 2006," says Morten Fon, President and CEO.