Jotun, the world’s biggest producer of marine paints, believes it is headed toward another record year in 2021.
The privately-owned company's bullish stance comes after it reported that operating profit increased by 41.4% in the first quarter this year, compared to the same period last year.
The figure increased to NOK 1.12bn ($136m) in the first three months of this year, from NOK 792m in the same period of 2020.
The improvement is due to increased sales, strong gross margin and good cost control, the company said.
Sales of marine coatings, however, continued to fall due to lower market activity related to newbuildings and maintenance of existing ships.
The company said the trajectory in the second half of this year is more uncertain because of reduced activity at shipyards and a weaker oil and gas market.
The coronavirus situation also creates uncertainty, but Jotun's broad geographical and segment footprints positions the Norwegian company to achieve further growth, company CEO Morten Fon said.
Last month, Jotun decided to raise prices due to increased costs of raw materials. Fon said that Jotun had no choice but to adjust prices.
Jotun reported operating revenue of NOK 5.485bn in the first quarter, against NOK 5.082bn in the same period last year.
The Gleditsch family owns 54% of the shares in the Sandefjord-based company, while industrial conglomerate Orkla owns the remaining stake.
Jotun, which was created in 1926, has about 10,000 employees world wide and is represented in more than 100 countries.
