Fiskars - Interim report (Q1 and Q3)

Fiskars first quarter 2014: Challenging start to the year

Fiskars Corp. Interim Report         May 6, 2014 at 8.30 am EET


First quarter 2014 in brief:

  -- Net sales decreased 3% to EUR 184.1 million (Q1 2013: 190.4)
  -- At comparable currency rates, sales decreased 1%
  -- Operating profit (EBIT) decreased 44% to EUR 8.2 million (14.6)
  -- Operating profit excluding non-recurring items decreased 23% to EUR 12.8
     million (16.6)
  -- Non-recurring costs related to the EMEA 2015 restructuring program totaled
     EUR 4.2 million (2.1)
  -- Earnings per share were EUR 0.14 (0.25) 
  -- Cash flow from operating activities increased to EUR 6.6 million (2.1) 
  -- Outlook for 2014 unchanged: full-year net sales are expected to be at 2013
     levels and operating profit excluding non-recurring items to be at or
     slightly below 2013 levels

Fiskars President and CEO, Kari Kauniskangas:

“Fiskars sales were impacted by adverse currency development across markets
during the first quarter. Consolidated net sales decreased by EUR 6.3 million,
of which no less than EUR 4.9 million was due to declines in currency rates.
Currency rates could even have a significant effect on Fiskars full-year sales.
Both our Home and Garden businesses were set for a strong start to the year,
but faced headwinds in the form of product availability in Europe and cold
weather in the US. Growth in the Home business was boosted by the earlier
timing of strong new product launches. The Garden business was flat
year-on-year, although the start of 2013 was unusually weak. 

In the Americas, Outdoor performance was disappointing. We need to make sure
that we serve our customers in a way that is consistent with our brand promise
and to re-build best-in-class relationships with our key retail partners is now
a priority for Outdoor and its new leadership in place since March. It will,
however, take time to regain the momentum lost during the first quarter. 

Our operating profit for the quarter was heavily impacted by volume losses in
the Outdoor business and the EMEA 2015 restructuring program. Even excluding
non-recurring items, profitability was not satisfactory, and we will take
determined action to drive sales and to adjust our cost levels. We remain
confident that our strategic work is making good progress and keep our outlook
for 2014 unchanged: full year sales are expected to be at 2013 levels and
operating profit excluding non-recurring items is expected to be at or slightly
below 2013 levels.” 

Group key figures

EUR million                                            Q1      Q1  Change   2013
                                                     2014    2013               
--------------------------------------------------------------------------------
Net sales                                           184.1   190.4     -3%  798.6
--------------------------------------------------------------------------------
Operating profit (EBIT)*                              8.2    14.6    -44%   61.0
--------------------------------------------------------------------------------
Non-recurring items*                                 -4.6    -2.1    118%  -12.8
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items       12.8    16.6    -23%   73.8
--------------------------------------------------------------------------------
EBIT before depreciation, amortization and           19.2    22.1    -13%   98.1
 impairment (EBITDA) excl. non-recurring items                                  
--------------------------------------------------------------------------------
Share of profit from associated company               7.9     9.4    -15%   50.8
--------------------------------------------------------------------------------
Change in the fair value of biological assets        -0.2     0.3            0.7
--------------------------------------------------------------------------------
Profit before taxes*                                 14.6    24.9    -41%  108.3
--------------------------------------------------------------------------------
Profit for the period*                               11.9    20.9    -43%   94.0
--------------------------------------------------------------------------------
Earnings per share, EUR                              0.14    0.25    -43%   1.14
--------------------------------------------------------------------------------
Equity per share, EUR                                7.20    7.06      2%   7.71
--------------------------------------------------------------------------------
Cash flow from operating activities**                 6.6     2.1    214%   81.0
--------------------------------------------------------------------------------
Equity ratio, %                                       57%     55%            61%
--------------------------------------------------------------------------------
Net gearing, %                                        35%     36%            24%
--------------------------------------------------------------------------------
Capital expenditure                                   5.4    10.1    -46%   37.2
--------------------------------------------------------------------------------
Personnel (FTE), average                            4,128   4,081      1%  4,087
--------------------------------------------------------------------------------

* Non-recurring charges in Q1 2014 related to the EMEA 2015 restructuring
program and asset impairments 
** Including a Wärtsilä dividend of EUR 26.9 million in Q1 2014 (25.6)


Full interim report
The full interim report is published as a pdf file attachment to this summary
stock exchange release and is available on the company's Web site at
www.fiskarsgroup.com. 

News conference:
An analyst and press conference on the first quarter results will be held on
May 6, 2014, at 10:00 am at the company's headquarters, Fiskars Campus,
Hämeentie 135 A, Helsinki. Presentation material will be available at
www.fiskarsgroup.com. 


FISKARS CORPORATION

Kari Kauniskangas
President and CEO


Further information:

  -- President and CEO Kari Kauniskangas, tel. +358 204 39 5500
  -- CFO Ilkka Pitkänen, tel. +358 204 39 5054


Fiskars 365 - celebrating centuries of pride, passion and design. Every day.

Established in 1649 as an ironworks in a small Finnish village, Fiskars has
grown to be a leading global supplier of consumer products for the home, garden
and outdoors. Available in more than 60 countries, Fiskars products solve
everyday problems, making daily home, garden and outdoor projects easier and
more enjoyable through superior performance and design.  Fiskars is listed on
NASDAQ OMX Helsinki, and the company's net sales were 799 million euro in 2013.
The Group's key international brands are Fiskars, Iittala and Gerber.
www.fiskarsgroup.com/365

Attachments:

Fiskars Q12014 report_eng.pdf