CHAIRMAN OF THE BOARD, ODD GLEDITSCH D.Y.
Managing unpredictability
By remaining true to Jotun’s values, strategy and core mission, the company achieved strong results in 2019.
By investing in the future while working to control costs, Jotun can achieve more balanced growth in the
years ahead.
Over the last five years, Jotun’s year-end results have been
influenced by a complex set of macro-economic factors, from
changing oil prices and trade policies, to fluctuations in currency
values and raw material prices. In some years, this volatility has
slowed Jotun’s performance, while in other years, as in 2019,
these conditions worked in our favour. While Jotun will always
respond quickly to manage events that it cannot control, the
company is developing its business to deliver more balanced
and predictable growth and profitability.
Balanced growth
Jotun’s Marine and Protective Coatings segments are developing
more products and services geared towards asset maintenance.
This contributes to reducing the business risk associated with
steep drops in global trade and oil prices, which negatively
impacts new constructions in the shipping and oil and gas
industries. In addition, Jotun is making its maintenance products
available to more customers by expanding distribution through
dealers. By further diversifying Jotun’s business through the
development of high-quality maintenance products and services
that enable customers to extend the lifecycle of assets, Jotun
can achieve more predictable growth.
In periods when macro-economic factors work to the company’s
advantage, operating costs tend to rise. It is important that the
company becomes more cost efficient to safeguard profitability,
even when demand for paints and coatings declines. The Board
is pleased to report that the company’s record-high profitability
in 2019 was partly due to good cost control.
Secure future
Another way in which Jotun seeks to achieve more predictable
results is by making investments in personnel, production
capacity and Research and Development. These investments
are not conditioned on year-end results but are consistent with
Jotun’s long-term growth strategy. The Board acknowledges
that not all new investments will pay off immediately, but by
exercising patience and remaining true to Jotun values, strategy
and core mission, we can achieve long-term value creation. This
will benefit not only owners, but also employees, communities
where we operate and society at large.
Board of Directors,
from left:
Peter A. Ruzicka,
Birger Amundsen,
Per Kristian Aagaard,
Nicolai A. Eger,
Jannicke Nilsson
(member from 2020),
Terje Andersen and
Richard Arnesen (2019).
In front Odd Gleditsch
d.y. (Chairman) and
Einar Abrahamsen.
FINANCIAL PERFORMANCE
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