Fiskars - Financial Statement Release

Fiskars year 2014: Continued good operational efficiency, weaker sales

Fiskars Corp.      Financial Statement Release      February 6, 2015 at 8:30 am
EET 

2014 in brief:

  -- Net sales decreased by 4% to EUR 767.5 million (2013: 798.6)
  -- Comparable net sales (currency neutral and excluding 2013 divested pottery
     business) decreased by 1%
  -- Operating profit (EBIT) decreased by 30% to EUR 42.7 million (61.0)
  -- Operating profit excluding non-recurring items decreased by 19% to EUR 59.6
     million (73.8)
  -- Non-recurring profit from the sale and revaluation of Wärtsilä shares was
     EUR 676.0 million
  -- Cash flow from operating activities was EUR 87.0 million (81.0)
  -- Earnings per share were EUR 9.44 (1.14) 
  -- Operative earnings per share (excl. the sale and revaluation of Wärtsilä
     shares and the change in fair value of the investment portfolio) were EUR
     0.76 (1.14)
  -- The Board proposes a dividend of EUR 0.68 per share (EUR 0.67 paid in March
     2014 and extra dividend of EUR 2.60 in December 2014)
  -- Outlook for 2015: full-year net sales are expected to increase from 2014
     levels and operating profit excluding non-recurring items to be below 2014
     levels due to increased investment into growth initiatives

Fourth quarter 2014 in brief:

  -- Net sales decreased by 4% to EUR 203.9 million (Q4 2013: 212.6)
  -- At comparable currency rates and excluding the pottery business divested in
     2013, net sales decreased by 5%
  -- Operating profit (EBIT) decreased by 81% to EUR 2.3 million (11.7)
  -- Operating profit excluding non-recurring items decreased by 24% to EUR 10.7
     million (14.0)
  -- Non-recurring costs amounted to EUR 8.4 million (2.3)
  -- Non-recurring profit from the sale and revaluation of Wärtsilä shares was
     EUR 676.0 million
  -- Earnings per share were EUR 8.77 (0.40)
  -- Operative earnings per share were EUR 0.09 (0.40)
  -- Cash flow from operating activities was EUR 47.9 million (40.6)

Fiskars President and CEO, Kari Kauniskangas:

“2014 was a milestone year for Fiskars - in addition to celebrating its 365th
anniversary, the company took several significant strategic steps in its
transformation. We ended the year with a new corporate structure and
organization, including a separate organization for the Asia-Pacific region. In
line with our growth strategy we launched our kitchen business internationally
and expanded into watering with an acquisition. Strategically and financially,
the most significant step was the divestment of the majority of our holdings in
Wärtsilä, which released funds for our shareholders in the form of an extra
dividend and for the company to be used for financing future growth over time. 

Looking at 2014 from a sales perspective I am not satisfied with our
performance, and the year ended with a dissatisfactory quarter. During the year
there were factors outside of our control, such as currencies and weather
conditions. However, we also faced challenges with availability in Europe in
the early part of the year and in the US we had challenges in our outdoor
business. Actions were initiated, and we saw improvements in the second half of
the year. Despite the drop in sales volume, we maintained good operational
efficiency and improved our gross margin. 

In 2015, Fiskars expects the Group's net sales to increase from the previous
year. The majority of the increase is expected from the addition of the
watering businesses and we also foresee growth in our comparable net sales. 

Despite the overall economic uncertainty, Fiskars strong financial position and
positive cash flow enable us to continue the determined execution of our
strategy in 2015 to lay the foundation for our future international growth. We
will ramp up our business and retail network in Asia, and the integration and
turnaround of the newly acquired US watering business has started. In addition,
we plan to increase investments in our brands in Europe. These strategically
important efforts will increase our costs and, together with the amortization
related to our five-year investment program, lead us to expect that our
operating profit excluding non-recurring items for 2015 will be below 2014
levels.” 

The full-year figures stated in this release are audited.

Group key figures

EUR million                             Q4      Q4  Change   2014   2013  Change
                                      2014    2013                              
--------------------------------------------------------------------------------
Net sales                            203.9   212.6     -4%  767.5  798.6     -4%
--------------------------------------------------------------------------------
Operating profit (EBIT)                2.3    11.7    -81%   42.7   61.0    -30%
--------------------------------------------------------------------------------
Non-recurring items1)                 -8.4    -2.3    261%  -17.0  -12.8     33%
--------------------------------------------------------------------------------
EBIT excl. non-recurring items        10.7    14.0    -24%   59.6   73.8    -19%
--------------------------------------------------------------------------------
EBITDA2) excl. non-recurring items    18.3    21.9    -16%   86.9   98.1    -11%
--------------------------------------------------------------------------------
Share of profit from associated               19.1           30.0   50.8    -41%
 company                                                                        
--------------------------------------------------------------------------------
Net change in the fair value of       27.9                   27.9               
 investment portfolio                                                           
--------------------------------------------------------------------------------
Profit before taxes3)                716.6    29.8   2302%  786.7  108.3    626%
--------------------------------------------------------------------------------
Profit for the period3)              718.2    32.7   2096%  773.3   94.0    723%
--------------------------------------------------------------------------------
Operative earnings/share, EUR4)       0.09    0.40    -56%   0.76   1.14    -26%
--------------------------------------------------------------------------------
Earnings/share, EUR5)                 8.77    0.40   2100%   9.44   1.14    725%
--------------------------------------------------------------------------------
Equity per share, EUR                                       14.06   7.71     82%
--------------------------------------------------------------------------------
Cash flow from oper. act.6)           47.9    40.6     18%   87.0   81.0      7%
--------------------------------------------------------------------------------
Equity ratio, %                                               73%    61%        
--------------------------------------------------------------------------------
Net gearing, %                                                11%    24%        
--------------------------------------------------------------------------------
Capital expenditure                    7.4     8.5    -14%   35.0   37.5     -6%
--------------------------------------------------------------------------------
Personnel (FTE), average             4,443   4,092      9%  4,243  4,087      4%
--------------------------------------------------------------------------------

1)In Q4 2014 EMEA 2015 restructuring costs, writedowns and bargain purchase
gain (badwill) and in 2013 EMEA 2015 restructuring costs and impairment charges 
2)EBIT before depreciation, amortization, and impairment
3)Including non-recurring profit from the sale and revaluation of Wärtsilä
shares of EUR 676.0 million on Oct 9, 2014 
4)Excl. non-recurring profit from the sale and revaluation of Wärtsilä shares
and the net change in the fair value of investment portfolio 
5)Including EUR 8.25 from the sale and revaluation of Wärtsilä shares on Oct 9,
2014 
6)Including a Wärtsilä dividend of EUR 26.9 million in 2014 and EUR 25.6
million in 2013 

Full financial statement release
The full financial statement release 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 fourth quarter and full year results
will be held on February 6, 2015, 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
  -- COO & CFO Teemu Kangas-Kärki, tel. +358 204 39 5703 



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 768 million euro in 2014.
The Group's key international brands are Fiskars, Iittala and Gerber.
www.fiskarsgroup.com

Attachments:

Fiskars Q4 2014_eng.pdf