FISKARS CORPORATION?S PROFITABILITY IMPROVED DURING REVIEW PERIOD

Fiskars Corporation           Stock Exchange Release
                              November 10, 2004 at 9:00 a.m.


Fiskars Corporation Interim Report January – September 2004
(Unaudited)


FISKARS CORPORATION’S PROFITABILITY IMPROVED DURING REVIEW PERIOD

Highlights of third quarter 7 – 9 / 2004
-  Net sales Q3/2004 unchanged from previous year at EUR 134.4 million
   (134.1).
-  Resin garden furniture operations divested.
-  EUR 3.9 million operating profit (4.9) includes non-recurring loss
   of EUR 3.9 million (0.0) on sale of garden furniture operation.
-  Change of president in Fiskars Brands.

Highlights of review period 1 – 9 / 2004
-  Net sales declined by 3.6% to EUR 470.3 million (488,0).
-  Operating profit improved to EUR 33.3 million (23.8).
-  Fiskars’ share of Wärtsilä’s result for the first nine months was
   EUR 11.2 million. In the comparison period, the dividends received
   represented EUR 25.6 million of the total investment income of EUR
   31.0 million.


FISKARS CORPORATION IN BRIEF

EUR million         Q3/2004  Q3/2003  9 mths/2004  9 mths/2003 2003
                                                               
net sales           134.4    134.1    470.3        488.0       620.3
operating profit    3.9      4.9      33.3         23.8        -51.9
operating profit, % 2.9%     3.7%     7.1%         4.9%        -8.4%
share of the result                                            
of associated                                                  
company             3.8      -        11.2         -           -
other investment                                               
income              0.2      3.3      5.3          31.0        31.3
profit before taxes 6.0      5.9      42.5         45.3        -30.0
earnings per share  0.05     0.05     0.55         0.56        -0.23
cash flow from                                                 
operations          18.6     39.0     50.8         85.5        83.6
     
OPERATIONS

FISKARS BRANDS, INC.

July – September (3 months)

Fiskars Brands’ net sales were at EUR 127,6 million (128,2). Sales
expressed in dollars exceeded the sales of the previous corresponding
period by 8.0% and totaled USD 155.9 million (144.3) Business
development was continued and garden furniture manufacturer Syroco was
divested at the beginning of September. Operating profit of EUR 4.1
million for the third quarter represented 3.2% of sales (4.8 and 3.8%)
and includes a non-recurring loss of EUR 3.9 million on the sale of
Syroco’s operating assets.

Sales for the third quarter declined from the second quarter due to
the cyclical nature of Fiskars Brands’ operations. Sales of School,
Office and Craft products did not reach targets while demand for
Garden Tools and Accessories was quite satisfactory. The rapid growth
in sales of Outdoor Recreation products continued (44%). Sales of
Consumer Electronics products also developed favorably and their
products had been successfully introduced into new retail channels.
Positive demand trend in Scandinavia continued while economy and
Fiskars market development in southern and central Europe was
unfavorable.

January - September (9 months)

Net sales in the first three quarters of the year totaled EUR 442.8
million (464.0) which is 4.6% less than previous year. The net sales
trend expressed in dollars was positive; sales grew by 5.2% to USD
542.2 million (515.4). Operating profit improved and was EUR 32.7
million (23.8) representing 7.4% (5.1) of net sales. The operating
result of the company for the review period was weakened by non-
recurring expenses of EUR 3.9 million (8.7).

In the first three quarters, Fiskars Brands’ markets in the United
States saw a moderately positive development. Demand in Scandinavia
was on the increase but consumer demand in Germany and Italy remains
weak. Poor weather in the UK had an adverse effect on the sales for
the year which had gotten off to a good start in other respects.

The School, Office and Craft (FISKARS(R)) lines are an important
Fiskars Brands operation in a competitive environment. The prime
selling season at the beginning of the school year was somewhat weaker
than anticipated. The business area has been appointed a new
President, and there will be an increased focus on developing new
products.

Overall demand for Garden Tools and Accessories (FISKARS(R)) was
satisfactory and the competitiveness continued improving. The business
area has enhanced the efficiency of production and marketing of the
recently integrated flowerpot and doormat product lines. It will also
continue rationalization measures in order to improve the
profitability of these product lines.

Sales of Outdoor Recreation (GERBER(R)) products in the US market
continued their strong growth. New successful products were launched
during the period, LED lighting products were added to the offerings,
and establishing new retail distribution channels also boosted sales.

Sales of Consumer Electronics (Power-Sentry(R)) developed positively.
New products and a better service standard have also supported opening
of new sales channels for the product line.


The European market continues to be heterogeneous. Sales in
Scandinavia developed favorably, particularly as a result of
successful marketing of new garden tools. Kitchenware operations were
activated and new product series will be launched shortly. In
September, the distribution channels began to prepare for the snow
tools season. Demand trend in continental Europe has been weak to
date, due to the overall economic situation and partly also to the
poor weather conditions during the summer. New products were launched
in the UK; this was, however, not sufficient to compensate for the
slackened demand for some traditional products. A new kitchen knife
line was launched in Italy and will be introduced also in other
European markets.

INHA WORKS

Inha Works’ net sales for the third quarter increased by 34% to EUR
5.6 million compared with the previous corresponding period (4.2). Net
sales for the first nine months grew by 21% to EUR 22.9 million
(19.0). Strong demand for Buster(R) boats continued even after the
normal selling season and has this year exceeded overall market
growth. The new painted aluminum boats with a high quality surface
finish were presented in September and will be launched next year.
Interest in these novelty products has been great among dealers and
media, and will be introduced to the public in Scandinavian boat shows
next spring.

Steady demand for hinges continued both in domestic and export
markets. The forge was working at capacity. Rising steel prices have
an adverse impact the otherwise good profitability of these products.

Inha Works’ operating profit for the third quarter was EUR 0.4 million
(0.3) and for the nine first months EUR 2.7 million (2.4).

REAL ESTATE OPERATIONS

The net sales trend and profitability of the Real Estate Operations
developed positively.

WÄRTSILÄ

Wärtsilä is reported as an associated company in Fiskars’ consolidated
financial statements as of the beginning of 2004. The nine-month
result includes a share of Wärtsilä’s result in proportion of Fiskars’
holding in the respective period deducted by goodwill amortization.

Fiskars’ share of the results of the associated company for the third
quarter was EUR 3.8 million and for the nine months EUR 11.2 million.
At the end of the period, Fiskars held 20.5% of Wärtsilä’s shares and
28.1% of the votes. The book value of the shares at the end of
September was EUR 214.7 million and their market capitalization was
EUR 240 million.


INVESTMENT ACTIVITIES

During the review period, Fiskars has divested the bulk of its
investments in private equity following the sale of its interest in
EQT Funds. Income from the remaining investments for the third quarter
was EUR 0.2 million (3.3) and for the first nine months EUR 5.3
million (31.0). Dividend income from Wärtsilä was still included in
investment income for 2003.

PERSONNEL

At the end of the period, the total number of corporate personnel was
3,495 (3,789); 1,572 (1,884) of these worked in North America and 900
(893) in Finland. At the end of September 2003, the number of
personnel in Syroco which was divested during the review period was
261.

FISKARS BRANDS, INC.’S MANAGEMENT

Fiskars Brands, Inc.’s President and CEO Mr. William J. Denton
resigned from his post at the end of September 2004. Under his four-
year term of office and his leadership the new Management Group
implemented far-reaching structural programs in difficult market
situations. A marked improvement in the working capital was also
achieved. Mr. Denton's services continue to be available to the Board
of Directors.

Mr. Jim Purdin, the Chief Operative Officer of the Company, was
appointed President and CEO of Fiskars Brands as from 15 October 2004.

CAPITAL EXPENDITURE

Investments in industrial fixed assets and real estates during the
first nine months amounted to EUR 13.7 million (21.1). Investments in

securities were EUR 22.7 million (10.9) and mostly consisted of shares
in the associated company Wärtsilä Plc.

BALANCE SHEET AND FINANCING

The balance sheet total was EUR 659 million (758) and has decreased by
EUR 19 million since the beginning of the financial year. The decrease
is attributable both to divestments and systematic reduction of
working capital.
Cash flow and liquidity are strong. At the end of the review period
equity ratio was at 55% which is 4% higher than at the end of the
financial year 2003. Net gearing improved from 57% at the year-end to
49%. Interest-bearing net liabilities decreased by EUR 24 million from
the year-end and were EUR 175 million.
Net financing costs decreased and were EUR 2.0 million (2.3) in the
third quarter and EUR 7.4 million (9.5) for the three first quarters
of the year.

PURCHASE AND TRANSFER OF OWN SHARES

The corporate Board of Directors has an authorization to acquire the
company’s own shares. The Board did not exercise this authority during
the third quarter. At September 30, 2004, the company held altogether
91,080 of its shares of series A and 300 shares of series K.

ANNUAL GENERAL MEETING 2004

The Annual General Meeting of Fiskars Corporation held on March 16,
2004 decided on a dividend payment of EUR 0.31/share on A-shares and
EUR 0.29/share on K-shares, in total EUR 16.8 million.

The meeting determined that the number of Board members shall be seven
and the number of deputy members one. Board members Mr. Göran J.
Ehrnrooth, Mr. Mikael von Frenckell, Mr. Gustaf Gripenberg, Mr. Olli
Riikkala and Dr. Thomas Tallberg were reelected, Mr. Paul Ehrnrooth
and Ms. Ilona Ervasti-Vaintola were elected as new members, and Mr.
Alexander Ehrnrooth was elected deputy member. The term of the Board
members and of the deputy member expires at the Annual General Meeting
2005.

KPMG Wideri Oy Ab was elected auditor.

The Annual General Meeting authorized the Board of Directors to decide
during one year starting from March 16, 2004 on the purchase and
transfer of not more than 1,869,803 A-shares and not more than 805,618
K-shares.





CORPORATE GOVERNANCE

The Corporate Governance Recommendation for Listed Companies issued by
HEX Plc, the Central Chamber of Commerce of Finland and the
Confederation of Finnish Industry and Employers entered into force on
July 1, 2004. Fiskars follows the recommendations.



SHARE PRICES

The price of Fiskars A-share on the Helsinki Exchanges at the end of
September was EUR 10.89 (9.40 at the beginning of the year) and the
price of K-share EUR 10.90 (10.45). The market capitalization of the
company’s shares at the end of September was EUR 600 million.

IFRS

According to its earlier announcement, Fiskars will introduce IFRS as
the standard for its accounting practice at the beginning of 2005. The
January – March Interim Report will be the first one prepared in
accordance with IFRS. The project is progressing according to plan,
reporting differences have been identified, comparison data for this
year are being collected, and systems are being updated in accordance
with the requirements of the new reporting practice.

SIGNIFICANT EVENTS AFTER THE REVIEW PERIOD

Extraordinary General Meeting: Fiskars Corporation’s Board of
Directors has decided to convene an Extraordinary General Meeting for
December 3, 2004.
-  The Board will propose that the Extraordinary General Meeting
   decide on an additional dividend payment of EUR 1.00/A-share and
   EUR 0.98/K-share.
-  The Board will also propose a rights issue under which two new A-
   shares will be issued for each five A-shares and two new K-shares
   for each five K-shares, respectively.

Capital loan: In addition, Fiskars Corporation’s Board has decided to
issue a capital loan of not more than EUR 30 million for subscription
by shareholders. The loan will be publicly quoted and the listing
prospectus will be published on December 2, 2004.

OUTLOOK

Fiskars’ third quarter was a sequel to the positive trend of the first
six months.

Sales of the last quarter will be the weakest one of the financial
year due to the cyclical nature of operations but is not expected to
affect the performance trend of the company. Fiskars will continue
efforts to improve its activities and organize its production and
organization according to the market situation.

The operational result for the financial year is expected to improve
from the previous year .



Heikki Allonen
President & CEO



CONSOLIDATED                     7-9    7-9  chg    1-9    1-9  chg   1-12
INCOME STATEMENT                2004   2003    %   2004   2003    %   2003
                                MEUR   MEUR        MEUR   MEUR        MEUR

NET SALES                      134.4  134.1    0  470.3  488.0   -4  620.3

Cost of goods sold             -93.1  -97.0   -4 -331.3 -352.0   -6 -448.3
GROSS PROFIT                    41.3   37.0   11  139.0  136.1    2  172.0

Other operating costs          -33.4  -32.1    4 -101.8 -103.6   -2 -139.6
Restructuring cost              -3.9    0.0        -3.9   -8.7       -84.2
OPERATING PROFIT                 3.9    4.9  -19   33.3   23.8   40  -51.9

Share of assoc.comp.result       3.8    0.0        11.2    0.0         0.0
Income from investments          0.2    3.3  -93    5.3   31.0  -83   31.3
Other financial income           0.1    0.4  -81    0.2    0.5  -54    2.1
Financial expense               -2.1   -2.7  -22   -7.6  -10.0  -24  -11.5
PROFIT BEFORE TAXES              6.0    5.9    2   42.5   45.3   -6  -30.0

Taxes for the period            -3.3   -3.1    7  -12.0  -14.3  -16   17.2
PROFIT (LOSS) FOR THE PERIOD     2.7    2.8   -4   30.5   31.1   -2  -12.8

Earnings per share, euro        0.05   0.05        0.55   0.56       -0.23

Currency rates:                  7-9    7-9  chg    1-9    1-9  chg   1-12
                                2004   2003    %   2004   2003    %   2003

USD average rate (I/S)          1.22   1.12    9   1.23   1.11   10   1.13
USD end-of-period (B/S)         1.24   1.17    6   1.24   1.17    6   1.26

CONSOLIDATED BALANCE SHEET      9/04   9/03  chg  12/03
                                MEUR   MEUR    %   MEUR
ASSETS

Fixed assets                   185.2  249.1  -26  173.6
Long-term investments          199.9  218.5   -8  215.9
Inventories                    116.8  139.0  -16  124.4
Financial assets               157.3  151.0    4  164.6
TOTAL                          659.2  757.7  -13  678.4

EQUITY AND LIABILITIES

EQUITY
Share capital                   55.4   55.4    0   55.4
Other equity                   305.4  362.9  -16  293.0

PROVISIONS                       4.2    6.7  -37    8.9
LIABILITIES
Long-term                       99.9  124.3  -20  123.4
Short-term                     194.3  208.4   -7  197.8
TOTAL                          659.2  757.7  -13  678.4


KEYFIGURES                      9/04   9/03  chg  12/03
                                               %
Equity/share, euro              6.52   7.55  -14   6.29
Equity ratio                     55%    55%   -1    51%
Net gearing                      49%    47%    3    57%
Equity, meur                   360.8  418.3  -14  348.3
Net interest-bear.debt, meur   175.2  196.8  -11  198.6
Gross investments, meur         36.4   32.0   14   37.8
Avarage number of employees     3894   3660    6   3633


CONSOLIDATED STATEMENT           7-9    7-9         1-9    1-9        1-12
OF CASH FLOWS                   2004   2003        2004   2003        2003
                                MEUR   MEUR        MEUR   MEUR        MEUR
From oper. activities           18.6   39.0        50.8   85.5        83.6
From investm. activities         1.9   -0.7        -6.0  -23.2       -22.4
From financing                 -34.3  -31.4       -55.2  -58.4       -63.8
CHANGE IN CASH                 -13.8    6.9       -10.4    3.9        -2.6
Cash at beginning of period     20.5   16.4        16.9   19.5        19.5
Currency transaction adjustm.   -0.1   -0.1         0.1   -0.1        -0.1
CASH AT END OF PERIOD            6.6   23.2         6.6   23.2        16.9

NET SALES                        7-9    7-9  chg    1-9    1-9  chg   1-12
BY BUSINESS AREA                2004   2003    %   2004   2003    %   2003
                                MEUR   MEUR        MEUR   MEUR        MEUR
Fiskars Brands                   128    128   -1    443    464   -5    589
Inha Works                         6      4   34     23     19   21     24
INDUSTRY TOTAL                   133    132    1    466    483   -4    613
Corporate & real estate            2      2  -13      7      7   -6     10
Eliminations                      -1     -1   15     -2     -2    4     -3
CORPORATE TOTAL                  134    134    0    470    488   -4    620

RESULT                           7-9    7-9  chg    1-9    1-9  chg   1-12
BY BUSINESS SEGMENT             2004   2003    %   2004   2003    %   2003
                                MEUR   MEUR        MEUR   MEUR        MEUR
Fiskars Brands                   4.1    4.8  -14   32.7   23.8   37  -51.4
Inha Works                       0.4    0.3   36    2.7    2.4   14    2.5
INDUSTRY TOTAL                   4.5    5.1  -12   35.4   26.2   35  -48.9
Corporate & real estate         -0.6   -0.2  172   -2.1   -2.4  -12   -3.0
OPERATING PROFIT                 3.9    4.9  -19   33.3   23.8   40  -51.9
Share of assoc.comp.result       3.8    0.0        11.2    0.0         0.0
Income from investments          0.2    3.3  -93    5.3   31.0  -83   31.3
CONSOLIDATED SEGMENTAL RESULT    8.0    8.2   -2   49.9   54.8   -9  -20.6

NET SALES                        7-9    7-9  chg    1-9    1-9  chg   1-12
BY MARKET AREA                  2004   2003    %   2004   2003    %   2003
                                MEUR   MEUR        MEUR   MEUR        MEUR
Finland                            8      7   11     32     29    9     38
Scandinavia                       13     11   26     46     42   10     57
Other Europe                      23     24   -2     94     98   -4    119
North America                     84     88   -5    283    307   -8    389
Other                              6      4   48     15     12   31     18
CORPORATE TOTAL                  134    134    0    470    488   -4    620

Export from Finland               11      9   20     42     41    2     53

Short delivery times are a prerequisite in Fiskars' fields of operations.
Therefore, the backlog of orders and changes in it are not of
significant importance.



CONTINGENCIES                   9/04   9/03       12/03
                                MEUR   MEUR        MEUR
FOR THE COMPANY'S OWN
COMMITMENTS
Real estate mortgages              0      1           1
Pledged assets                     1      0           0
Bills of exchange                  0      0           1
Lease contingencies               44     61          54
Other contingencies                6      1           8
TOTAL CONTINGENCIES               51     63          64

NOMINAL VALUES OF DERIVATIVE
INSTRUMENTS

Forward exch. contracts          105    154          91
Interest rate swaps               40     94          87
FRA's                             32     39          36

MARKET VALUES OF DERIVATIVE INSTRUMENTS
COMPARED TO NOMINAL VALUES

Interest rate swaps               -1     -6          -5
FRA's                              0      0           0

Nominal values also include closed contracts.

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