FINANCIAL PERFORMANCE
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Chairman of the Board, Odd Gleditsch d.y.
Preparing for the future
Jotun acted quickly in response to challenging markets in 2018, laying the foundation for improved
performance in 2019.
Jotun’s long-term growth trend continued in 2018, but was
slowed by both global and regional market conditions, which
impacted the sale of Jotun products, especially within the
Marine and Protective Coatings segments. While underlying
growth was positive due in part to another strong year for
the Decorative Paints segment, increased raw material prices
impacted profitability.
Taking action
Jotun responded quickly to the 2018 challenges. The company
has implemented price increases to offset raw material costs
and worked to control expenses and generate stronger cash
flow from operating activities. Claims reported last year have
been handled professionally and steps have been taken to
ensure these issues are kept to a minimum and managed in a
more structured, professional way.
At the same time, Jotun has worked steadily over the past years
to strengthen the company. The Board approved a number
of investments in IT systems, new factories, R&D centres and
competence development. The company’s mobility initiative,
established to create a more flexible, connected organisation
was strengthened. Diversity remains a key focus, including at
our headquarters in Sandefjord, which includes representatives
from 38 countries. The Board is also pleased with Jotun’s HSEQ
performance, which has shown steady improvement.
Sustainable growth
Looking ahead, Jotun will focus on securing more profitable
projects and generating high sales of premium products to
improve margins. The Board recognises the need for Jotun
to accelerate product development and customisation to
respond faster to customer demand, while implementing a
more structured approach to entering new markets. With these
changes, combined with more stable raw material prices and
increased activity in the shipping and offshore industries, the
Board anticipates improved performance in the years ahead.
Board of Directors, from left: Birger Amundsen, Terje Andersen, Per Kristian Aagaard, Einar Abrahamsen, Richard Arnesen,
Odd Gleditsch d.y. (Chairman), Karl Otto Tveter and Nicolai A. Eger.