Fiskars
Fiskars third quarter 2014: Stable performance, big strategic steps

DGAP-News: Fiskars

31.10.2014 / 07:30

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Fiskars Corp. Interim Report         October 31, 2014 at 8.30 am EET

Third quarter 2014 in brief:

  -- Net sales were at previous year's levels at EUR 178.4 million (Q3 2013:
     177.9)
  -- With comparable currencies, net sales increased by 1%
  -- Operating profit (EBIT) increased by 57% to EUR 13.7 million (8.7)
  -- Operating profit (EBIT) excluding non-recurring items increased by 9% to
     EUR 16.8 million (15.4)
  -- Non-recurring restructuring costs related to the EMEA 2015 program totaled
     EUR 3.1 million (2.0)
  -- Sale of Wärtsilä shares for EUR 639 million completed on October 9, 2014
  -- Board of Directors proposes an extra dividend of EUR 2.60 per share 
  -- Earnings per share were EUR 0.27 (0.16)
  -- Cash flow from operating activities was EUR 26.1 million (23.1)
  -- Outlook for 2014 unchanged: full-year net sales and operating profit excl.
     non-recurring items are expected to be below 2013 levels

Fiskars President and CEO, Kari Kauniskangas:

'Fiskars took several important strategic steps during the third quarter. We
announced plans to increase our agility by reorganizing our businesses in
Europe and Asia-Pacific as of December 1, 2014. We also announced the
acquisition of the leading US watering brands Nelson and Gilmour to expand our
garden offering. The transaction is expected to be concluded during the fourth
quarter. 

As Fiskars goal is to become a world-class branded consumer goods company,
being the largest owner of Wärtsilä is no longer a part of our strategy. A
divestment of a part of our Wärtsilä holding for EUR 639 million was announced
in September and completed in October. The Board of Directors proposes that EUR
213 million will be returned to shareholders in the form of an extra dividend. 

In our business operations, some of the challenges that had affected Fiskars in
the first half of the year turned for the better: currencies and availability
issues in Europe only had a minor negative impact on sales. The quarter's
comparable sales (excl. divested business) were up by 3%, driven by the timing
of Home product launches in Europe. EBIT excluding non-recurring items was up
by 9%, mainly due to timing of costs. 

Outdoor sales in the Americas continued to be soft, and the market situation in
Finland remained difficult. As Finland is a significant market for our Home
business, the important fourth quarter holiday season may be challenging.' 

Group key figures

EUR million                  Q3      Q3  Change    Q1-Q3    Q1-Q3  Change   2013
                           2014    2013             2014     2013               
--------------------------------------------------------------------------------
Net sales                 178.4   177.9      0%    563,5    586.0     -4%  798.6
--------------------------------------------------------------------------------
Operating profit (EBIT)    13.7     8.7     57%     40.4     49.4    -18%   61.0
--------------------------------------------------------------------------------
Non-recurring items*       -3.1    -6.6    -54%     -8.5    -10.5    -18%  -12.8
--------------------------------------------------------------------------------
EBIT excl.                 16.8    15.4      9%     48.9     59.8    -18%   73.8
 non-recurring items*                                                           
--------------------------------------------------------------------------------
EBITDA** excl. NRI*        23.5    20.5     14%     68.6     76.2    -10%   98.1
--------------------------------------------------------------------------------
Share of profit from       11.3    12.1     -6%     30.0     31.7     -5%   50.8
 associated company                                                             
--------------------------------------------------------------------------------
Change in the fair         -0.3     0.1             -0.5      0.7            0.7
 value of biological                                                            
 assets                                                                         
--------------------------------------------------------------------------------
Profit before taxes        26.2    17.8     48%     70.1     78.5    -11%  108.3
--------------------------------------------------------------------------------
Profit for the period      21.8    13.2     66%     55.1     61.3    -10%   94.0
--------------------------------------------------------------------------------
Earnings per share, EUR    0.27    0.16     66%     0.67     0.75    -10%   1.14
--------------------------------------------------------------------------------
Equity per share, EUR                               7.84     7.42      6%   7.71
--------------------------------------------------------------------------------
Cash flow from             26.1    23.1     13%     39.1     40.5     -3%   81.0
 operating                                                                      
 activities***                                                                  
--------------------------------------------------------------------------------
Equity ratio, %                                      60%      59%            61%
--------------------------------------------------------------------------------
Net gearing, %                                       30%      31%            24%
--------------------------------------------------------------------------------
Capital expenditure        15.7     8.6     81%     27.7     29.0     -4%   37.5
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Personnel (FTE),          4,199   4,049      4%    4,177    4,085      2%  4,087
 average                                                                        
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* Non-recurring charges related to the EMEA 2015 restructuring program and in
2013 also impairment charges 
** Earnings before interest, tax, depreciation, amortization, and impairment
*** Including a dividend from Wärtsilä of 26.9 MEUR 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 third quarter results will be held on
October 31, 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
  -- COO and 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 799 million euro in 2013.
The Group's key international brands are Fiskars, Iittala and Gerber.
www.fiskarsgroup.com/365
News Source: NASDAQ OMX



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31.10.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English       
Company:     Fiskars       
 
 
             Finland       
ISIN:        FI0003017012  
 
 
End of News    DGAP News-Service  
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