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Paint maker Tikkurila's profit falls on weak Russian demand
July 25, 2014 / 6:41 AM / 3 years ago

Paint maker Tikkurila's profit falls on weak Russian demand

HELSINKI, July 25 (Reuters) - Finnish paint maker Tikkurila said uncertainty in the Russian economy had started to affect demand in the second-quarter, hitting its sales and profits.

The company, which makes about a third of its sales in Russia, said its quarterly operating profit fell 3 percent from a year ago to 32 million euros ($43 million).

Its total sales dipped 7 percent and those in Russia 15 percent due to weak Russian rouble as well as lower demand.

“The growing uncertainty related to economic development in Russia was increasingly reflected in consumer behaviour ... Based on our estimate, the volume growth in the Russian decorative paints market will be very low this year,” said Chief Executive Erkki Jarvinen in a statement.

However, the company stuck to its forecast of flat sales and adjusted operating profit for this year as a whole.

$1 = 0.7424 Euros Reporting by Jussi Rosendahl; Editing by David Holmes

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