Fiskars third quarter 2014: Stable performance, big strategic steps
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 2014 | Q3 2013 | Change | Q1–Q3 2014 | Q1–Q3 2013 | Change | 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. non-recurring items* | 16.8 | 15.4 | 9% | 48.9 | 59.8 | -18% | 73.8 |
| EBITDA** excl. NRI* | 23.5 | 20.5 | 14% | 68.6 | 76.2 | -10% | 98.1 |
| Share of profit from associated company | 11.3 | 12.1 | -6% | 30.0 | 31.7 | -5% | 50.8 |
| Change in the fair value of biological assets | -0.3 | 0.1 | -0.5 | 0.7 | 0.7 | ||
| 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 operating activities*** | 26.1 | 23.1 | 13% | 39.1 | 40.5 | -3% | 81.0 |
| Equity ratio, % | 60% | 59% | 61% | ||||
| Net gearing, % | 30% | 31% | 24% | ||||
| Capital expenditure | 15.7 | 8.6 | 81% | 27.7 | 29.0 | -4% | 37.5 |
| Personnel (FTE), average | 4,199 | 4,049 | 4% | 4,177 | 4,085 | 2% | 4,087 |
* 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