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 2014 | Q1 2013 | Change | 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 impairment (EBITDA) excl. non-recurring items | 19.2 | 22.1 | -13% | 98.1 |
| 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