Stock exchange release
November 9, 2005
FISKARS CORPORATION INTERIM REPORT JANUARY-SEPTEMBER 2005
FISKARS CORPORATION INTERIM REPORT JANUARY-SEPTEMBER 2005
(Unaudited, complies with International Accounting Standards IAS 34)
Fiskars third quarter operative result before non-recurring items
was EUR 8 million. Restructuring of production initiated.
Highlights, July September 2005
- Net sales was EUR 131.9 million (134.7)
- Operating loss was EUR -27.6 million (12.5)
- Operating profit before non-recurring items was EUR 7.6
million (12.5) representing a 5.8% operating margin (9.3%)
- Non-recurring restructuring expenses EUR 15.8 million
- Goodwill impairment EUR 19.4 million
FISKARS CORPORATION IN BRIEF
MEUR Q3 2005 Q3 2004 1-9/2005 1-9/2004 2004
Net Sales 131.9 134.7 424.1 439.0 565.6
Operating Profit -27.6 12.5 -1.5 44.2 52.1
Operating -20.9% 9.3% -0.4% 10.1% 9.2%
Margin (%)
Operating Profit 7.6 12.5 33.7 44.2 52.1
before non-recurring
items
Income from 4.8 4.5 16.9 13.8 26.7
participating interests
Realized gain on the 49.8
sale of Wärtsilä shares
Profit before taxes -23.7 14.9 60.4 55.1 75.0
EPS (EUR) -0.33 0.07 0.68 0.47 0.71
Operating cash flow 44.3 43.7 77.5
CORPORATION
July September (3 months)
Fiskars net sales for the third quarter of EUR 131.9 million
(134.7) was on a consistent level with the prior year. On 17
October the corporation announced rationalization projects that
will be carried out during the next 18 months at Fiskars Brands
Inc. The full cost of the restructuring projects that include
restructuring of production capacity and rationalization of
operations is estimated to be approximately EUR 50 million. The
operating loss of EUR -27.6 million for the quarter included
restructuring costs for Fiskars Brands, Inc. of EUR 35.2 million.
This consists of an impairment of goodwill, inventory write-off
and non-recurring costs resulting from acceleration of the
depreciation plans for some property, plant and equipment. Third
quarter operating profit before non-recurring items was EUR 7.6
million (12.5) representing a 5.8% (9.3%) operating margin.
January September (9 months)
Net sales during the first nine months of the year of EUR 424.1
million (439.0) was 3% below prior year. An operating loss of EUR
-1.5 million (44.2) is reported representing a margin of -0.4%
(10.1%). Operating profit before non-recurring items was EUR 33.7
million representing an operating margin of 7.9%.
The net result for this period includes a gain of EUR 49.8 million
on the sale of Wärtsilä B-shares in June.
Net finance costs were EUR 4.9 million (2.9). That includes
investment income of EUR 2.3 million (5.3) as well as foreign
exchange translation gains of EUR 0.7 million (-0.1).
FISKARS BRANDS, INC.
July September (3 months)
Net sales for Fiskars Brands of EUR 123.9 million (126.3) was
approximately 2% lower than in the previous year. The operating
loss was EUR -28.5 million. The typical slow-down of business in
European markets during the latter part of summer weakened
profitability in the third quarter. Increases in oil-based raw
material costs and the infiltration of imported products
intensified competition in the US market. In particular, the
sales of plastic pots and mats dropped and profitability
deteriorated.
At the end of the interim period, Fiskars Brands launched
rationalization projects, whose goal is to develop the
manufacturing structure and to increase sourcing of labour-
intensive products. As a result, restructuring costs of EUR 35.2
million have been incurred. Manufacturing costs were increased by
inventory write-offs of EUR 3.2 million. Accelerated depreciation
on property, plant and equipment of EUR 12.7 million was booked.
In addition, an impairment of goodwill of EUR 19.4 million was
recognized for garden operations.
January September (9 months)
The year to date net sales of Fiskars Brands decreased by
approximately 4% from previous year (409.9) to EUR 393.9 million.
Operating profit before non-recurring items was EUR 32.1 million
(41.8) and a loss of EUR 3.1 after the non-recurring items. Net
sales in the US market was EUR 230.1 million (246.3) representing
59% (61%) of total sales. Net sales in the European market was EUR
144.5 million (146.4) representing 37% (35%) of total sales.
Within Europe, the development has been mostly stable and the
demand has followed the development of the general consumer
demand.
Competition in Fiskars Brands markets has intensified and price
is more often the decisive factor than quality in the US. An
increasing part of the product assortment is produced in low-cost
countries. During the period, raw material price increases and
changes to product mix have also influenced profitability.
As Fiskars Brands has increased its sourcing , the number of
personnel needed to coordinate the activity has grown considerably
in China during the year. At the same time, the product mix has
been renewed and Fiskars Brands has increased and reallocated
resources dedicated to marketing and product development.
INHA WORKS
Net sales for Inha Works was EUR 5.8 million (5.6) during the
third quarter. Profitability improved over the prior year and the
operating profit was EUR 0.6 million (0.4). Year to date net sales
was EUR 25.2 million (22.9) and operating profit was EUR 3.2
million (2.8). Capacity was increased and investments in
production were made and rationalization measures were taken in
response to the growth in the boating market. Investments related
mainly to sheet metal handling were taken into use at the end of
the interim period.
REAL ESTATE OPERATIONS
Net sales and operating profit for real estate operations in the
third quarter were EUR 3.1 million (3.7) and EUR 1.3 million
(2.0), respectively. Year to date net sales and operating profit
were EUR 7.4 million (8.2) and EUR 1.9 million (3.4),
respectively. Among other things, the lower value of biological
assets caused by lower prices for standing timber has affected
operating profit in relation to the prior year.
WÄRTSILÄ
Income from the equity investment in Wärtsilä developed positively
and Fiskars share of Wärtsilä net income in the third quarter was
EUR 4.8 million (4.5). Year to date the share of Wärtsilä net
income was EUR 16.9 million (13.8).
In June Fiskars sold Wärtsilä B-shares generating a cash flow of
around EUR 100 million.
The company acquired additional Wärtsilä A-shares for EUR 6.0
million in the third quarter. Fiskars ownership of shares and
share of voting rights in Wärtsilä was 16.0% (20.5% at the
beginning of the year) and 27.8% (28.1%), respectively. The
corporate book value of the investment in the associated company
at the end of the period of EUR 194.6 million included goodwill of
EUR 26.5 million.
The book value of the shares in the parent company was EUR 170.7
million and market value EUR 394 million, respectively.
Wärtsilä has adopted IAS 39 as of 1 January 2005. The IAS 39 fair
value reserve included in the equity of Wärtsilä has been included
in the equity of Fiskars prorated by Fiskars ownership
percentage. Based on Fiskars ownership interest in Wärtsilä, the
effect of this fair value reserve of EUR 37.8 million at 1 January
2005 had been reduced to EUR 20.7 million at the end of September.
EMPLOYEES
The number of employees was 3 357 at the end of the interim
period, which is 91 less than at the beginning of the year. The
number of employees decreased by 191 in the US while the number of
employees moderately increased in Finland and in Europe in total.
Subsequent to the interim period, in October, codetermination
negotiations began at the Billnäs factory in Finland with the
purpose of reducing the workforce by 75-95 employees. The number
of employees at Inha Works has grown by 20 people during the
interim period.
INVESTMENTS
Investments in the third quarter were EUR 11.9 million (3.8). The
EUR 6.0 million acquisition of Wärtsilä A-shares represented the
largest individual investment. Significant industrial investments
were made to automate production and to renew the machinery base
at Inha Works. Construction works of a logistics center commenced
at the Billnäs factory.
Year to date investments were EUR 33.3 million (36.6). Year to
date industrial investments amounted to EUR 23.8 million (13.8).
The single most significant industrial investment was the
acquisition of the Gingher-scissors operations in the US.
NET PROFIT AND TAXES
Net profit from continuing operations was EUR -25.3 million (10.2)
in the third quarter. Year to date net profit from continuing
operations was EUR 52.7 million (41.4). Taxes have been calculated
on the basis of the local accumulated income and the enacted tax
rates while taking into consideration the estimated impact of
deferred tax assets. Taxes of EUR 7.7 million (13.7) have been
calculated on year-to-date accumulated profit. Deferred tax assets
have not been increased in connection with the third quarter
impairment losses recognized in the US. The impairment of goodwill
during the interim period is not tax deductible.
Earnings per share for the interim period was EUR 0.68 (0.47).
BALANCE SHEET AND FINANCIAL POSITION
The total assets was EUR 708.5 million (683.5 at the beginning of
the period). A significant factor in the growth of the asset base
was the strengthening of the US dollar during the interim period.
Non-current assets fell during the period by EUR 39 million. This
was due to the recognized write-downs and the decrease in the
value of the equity investment in Wärtsilä. The level of inventory
and receivables is influenced by the seasonality of the business
operations.
Cash flow from operations was EUR 44.3 million (43.7) and cash
flow from investing activities was EUR 73.1 million (5.2).
Interest-bearing net debt fell from the EUR 202.0 million at the
beginning of the year by EUR 76.4 million to EUR 125,6 million at
the end of the year.
The financial position is strong with good liquidity. In addition
to the liquid asset base, there is considerable unused borrowing
capacity. The end of period equity to assets ratio was 55% (49%)
and netgearing was 32% (60%). Both improved considerably during
the interim period.
PURCHASE AND DISPOSITION OF TREASURY SHARES
The board of directors is authorized to acquire and sell shares of
the Company not exceeding five percent (5%) of total equity and
voting rights. The Board has not exercised its authority during
the interim period. Treasury shares on 30 September 2005 consisted
of 127 512 A-shares and 420 K-shares. The amount of treasury
share has not changed during the interim period and the total
amount of shares corresponded to 0.2% of the total number of
Company shares.
ANNUAL GENERAL MEETING 2005
During the Fiskars annual general meeting held on 23 March 2005,
authorization was extended for the payment of dividends of EUR
22.8 million corresponding to 0.30 EUR/share and 0.28 EUR/share
for A-shares and K-shares, respectively.
It was decided that the Board of Directors consist of seven
members. Elections to the Board were as follows: Göran J.
Ehrnrooth, Mikael von Frenckell, Gustaf Gripenberg, Olli Riikkala,
Paul Ehrnrooth, Ilona Ervasti-Vaintola and Alexander Ehrnrooth.
The term of office for members of the Board shall end on the date
of the 2006 annual general meeting. In a meeting held subsequent
to the annual general meeting, the Board elected Göran J.
Ehrnrooth as Chairman and Mikael von Frenckell as Vice-Chairman.
KPMG Oy Ab was appointed as auditors.
Within the period of one year from 23 March 2005, the Board was
authorized to purchase no more than 2 619 712 A-shares and
1 127 865 K-shares and to sell no more than 2 747 224 A-shares and
1 128 285 K-shares.
EXTRAORDINARY GENERAL MEETING
In the extraordinary general meeting held on 27 September 2005, it
was decided that the Board of Directors consist of nine members.
New members elected to the Board were Kaj-Gustaf Bergh and Karl
Grotenfelt. The term of office for all the members of the Board
shall end on the date of the 2006 annual general meeting.
SHARE PRICE
The market price of Fiskars A-shares and K-shares were EUR 11.45
(EUR 7.90 at the beginning of year) and EUR 11.35 ( 7.90),
respectively. The market capitalization of the Company was EUR 885
million at the end of September.
On 1 July 2005, Fiskars shares were reclassified on the Helsinki
Stock Exchange under the activity code Consumer goods and
services.
OUTLOOK
As Fiskars Brands continues to face stiff competition, the Company
will implement a comprehensive production capacity restructuring
program. The majority of the program costs will be recognized in
the current financial year with mainly personnel costs recognized
in the next financial year. The restructuring measures will take
effect gradually and will not have a significant effect during the
first half of the next financial year.
The operating income before non-recurring items of the industrial
business activities fully owned by Fiskars will according to
earlier estimates not reach the level of last year.
Fiskars share of Wärtsiläs net profit has a significant effect
on the corporate profits.
Heikki Allonen
President and CEO
IFRS
This interim report has been prepared in accordance with
International Financial Reporting Standards (IFRS) and
International Accounting Standard 34 (IAS 34) Interim Financial
Reporting. Fiskars shall adopt IAS 39 Financial Instruments:
Recognition and Measurement from 1 January 2005 and shall
recognize its financial assets at fair value through profit or
loss in accordance with IAS 39. Fiskars does not hold any
financial instruments for which hedge accounting would apply. The
effect of the adoption of this standard on the opening balance of
shareholders equity is presented in a separate statement of
changes in equity. The effect of adoption on Fiskars operating
results will be minimal. The fair value reserve of EUR -0.3
million recognized at the IFRS transition date has been released
during the interim report period. A reconciliation between the
reported figures from the corresponding quarter last year and the
IFRS figures from the third quarter are also presented in the
appendices.
CONSOLIDATED 7-9 7-9 chg 1-9 1-9 chg 1-12
INCOME STATEMENT 2005 2004 % 2005 2004 % 2004
MEUR MEUR MEUR MEUR MEUR
NET SALES 131.9 134.7 -2 424.1 439.0 -3 565.6
Cost of goods sold -99.6 -90.7 10 -305.4 -299.5 2 -388.1
GROSS PROFIT 32.2 44.0 -27 118.8 139.5 -15 177.5
Other income 0.9 0.7 33 2.1 1.7 20 3.6
Sales and marketing expenses -17.6 -15.6 13 -52.2 -47.8 9 -63.5
Administration expenses -9.6 -14.6 -34 -35.5 -44.6 -20 -58.0
Other expenses -33.5 -1.9 -34.6 -4.6 -7.5
OPERATING PROFIT -27.6 12.5 -1.5 44.2 52.1
Share of assoc.comp.result 4.8 4.5 8 16.9 13.8 23 26.7
Gain on sale of Wärtsilä shares 49.8
Financial income and expenses -0.9 -2.1 -4.9 -2.9 -3.8
PROFIT BEFORE TAXES -23.7 14.9 60.4 55.1 10 75.0
Taxes -1.5 -4.7 -7.7 -13.7 -15.2
PROFIT FROM CONTINUING OPERATIONS -25.3 10.2 52.7 41.4 27 59.8
Profit from discontinued operations -4.8 -4.8 -5.3
PROFIT (LOSS) FOR THE PERIOD -25.3 5.4 52.7 36.6 44 54.6
Earnings per share, euro -0.33 0.07 0.68 0.47 0.71
continuing operations -0.33 0.13 0.68 0.53 0.77
discontinued operations -0.06 -0.06 -0.07
Earnings per share is undiluted. The company has no open otion programs.
CURRENCY RATES 7-9 7-9 chg 1-9 1-9 chg 1-12
2005 2004 % 2005 2004 % 2004
USD average rate (I/S) 1.26 1.23 3 1.26 1.23 3 1.24
USD end-of-period (B/S) 1.20 1.24 -3 1.20 1.24 -3 1.36
CONSOLIDATED BALANCE SHEET 9/05 9/04 chg 12/04
MEUR MEUR % MEUR
ASSETS
Tangible assets 127.3 141.7 -10 133.1
Intangible assets 24.4 38.9 -37 34.7
Biological assets 30.3 30.4 0 30.4
Shares in assoc.companies 194.6 219.1 -11 219.1
Other investments 6.3 6.6 -5 4.4
Deferred tax assets 47.3 43.5 9 47.3
LONG-TERM TOTAL 430.2 480.2 -10 469.0
Inventories 128.8 115.2 12 109.7
Financial assets 149.6 112.0 34 104.8
CURRENT TOTAL 278.3 227.2 22 214.5
Assets of a disposal group
held for sale 0.0
ASSETS TOTAL 708.5 707.4 0 683.5
EQUITY AND LIABILITIES
Equity 388.6 374.5 4 335.8
L/t interest bear.debt 130.2 112.2 16 146.5
L/t non-interest bear.debt 20.8 20.1 3 20.0
Deferred tax liabilities 20.8 7.2 20.2
LONG-TERM TOTAL 171.9 139.6 23 186.7
S/t interest bear.debt 40.6 89.3 -55 71.1
S/t non-interest bear.debt 107.6 104.0 3 90.0
CURRENT TOTAL 148.1 193.3 -23 161.1
Liabilities of a disposal
group held for sale 0.0
EQUITY AND LIABILITIES TOTAL 708.5 707.4 0 683.5
KEYFIGURES 9/05 9/04 chg 12/04
%
Equity/share, euro 5.02 4.84 4 4.34
Equity ratio 55% 53% 49%
Net gearing 32% 52% 60%
Equity, meur 388.6 374.5 4 335.8
Net interest bear.debt, meur 125.6 195.0 -36 202.0
Average number of employees 3536 3607 -2 3567
CONSOLIDATED STATEMENT 1-9 1-9 1-12
OF CASH FLOW 2005 2004 2004
MEUR MEUR MEUR
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxes 60.4 55.1 75.0
Adjustments for
Depreciation 50.1 17.9 25.1
Share of assoc.comp.result -16.9 -13.8 -26.7
Investment income (net) -52.1 -5.3 -6.3
Interest expense (net) 7.1 8.2 10.0
Chg in value of biological assets 0.1 -1.0 -2.0
Dividends from assoc.comp. 17.1 8.6 21.3
Dividends received, other 0.1 0.9 0.9
Financial costs paid (net) -7.1 -8.1 -9.7
Taxes paid -4.4 -15.8 -10.7
Change in interest free assets -5.9 -11.8 -2.6
Change in inventories -11.0 -4.6 -3.5
Change in interest free liability 6.7 13.3 6.6
NET CASH FROM OPERATING ACTIVITIES 44.3 43.7 77.5
CASH FLOWS FROM INVESTING ACTIVITIES
Transact. in assoc. comp. shares 95.4 -22.2 -22.2
Capital expenditure -24.0 -14.6 -19.7
Proceeds from sale of fixed asset 0.6 0.5 2.6
Sale of other l/t investments 1.4 22.7 25.4
Purchase of other l/t investments -0.4 -0.5 -1.2
Cash flow from discontinued operations 19.4 16.8
NET CASH USED IN INVESTING ACTIVITIES 73.1 5.2 1.7
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares -0.3 -0.3
New long term loans 0.0 16.5 45.3
Amortization of l/t loans -22.5 -56.7 -51.6
Changes in short term loans -41.5 4.6 3.2
Financial leases, payments -1.3 -2.2 -2.8
Other financing items 0.6 -1.9 1.0
Dividends paid -22.8 -16.8 -71.8
NET CASH FLOW FROM FINANC. ACTIVITIES -87.4 -56.8 -77.0
Translation difference -0.3 -2.2 -3.4
CHANGE IN CASH 29.6 -10.2 -1.2
Cash at beginning of period 15.6 16.8 16.8
CASH AT END OF PERIOD 45.2 6.6 15.6
STATEMENT OF CHANGES IN Share Other
CONSOLIDATED EQUITY Sharepremium Own reser-Transl.Retain.
capitalaccount shares vesadjustm earn. Total
MEUR MEUR MEUR MEUR MEUR MEUR MEUR
Jan.01,2004 55.4 21.3 -0.6 0.0 0.0 278.6 354.6
Own shares, change -0.3 -0.3
Dividend distribution -16.8 -16.8
Translation differences 0.3 0.3
Other changes 0.0 0.0
Net profit for the period 36.6 36.6
Sep.30,2004 55.4 21.3 -0.9 0.0 0.3 298.4 374.4
Dec.31,2003 FAS 55.4 21.3 -0.6 7.2 -11.0 276.0 348.3
IFRS change -7.2 11.0 2.6 6.3
Jan.01,2004 55.4 21.3 -0.6 0.0 0.0 278.6 354.6
Bonus issue 22.1 -21.3 -0.9 0.0
Own shares, change -0.3 -0.3
Dividend distribution -71.8 -71.8
Translation differences -1.4 -1.4
Other changes 0.0 0.0
Net profit for the period 54.6 54.6
Dec.31,2004 77.5 0.0 -0.9 0.0 -1.4 260.5 335.8
Dec.31,2004 77.5 0.0 -0.9 0.0 -1.4 260.5 335.8
Adoption of IAS 39
Fiskars Corporation -0.4 0.4 0.1
Associated company Wärtsilä 37.8 37.8
Jan.01,2005 77.5 0.0 -0.9 37.5 -1.4 261.0 373.7
Dividend distribution -22.8 -22.8
Translation differences 1.2 1.2
Change in fair value reserve 0.4 0.4
Chg in share in assoc. company* -6.9 -6.9
Other changes in assoc. company -10.3 0.6 -9.7
Net profit for the period 52.7 52.7
Sep.30,2005 77.5 0.0 -0.9 20.7 0.4 290.9 388.6
* Fair value reserve effect from the sale of shares booked in the income statement
SEGMENTINFORMATION 7-9 7-9 chg 1-9 1-9 chg 1-12
NET SALES 2005 2004 % 2005 2004 % 2004
MEUR MEUR MEUR MEUR MEUR
Fiskars Brands 123.9 126.3 -2 393.9 409.9 -4 528.0
Inha Works 5.8 5.6 3 25.2 22.9 10 29.2
Real Estate 3.1 3.7 -17 7.4 8.2 -9 11.0
Eliminations -0.9 -0.9 2 -2.3 -1.9 23 -2.6
CORPORATE TOTAL 131.9 134.7 -2 424.1 439.0 -3 565.6
Export from Finland 9.0 10.8 -17 43.1 41.7 3 56.2
SEGMENTINFORMATION 7-9 7-9 1-9 1-9 1-12
RESULT 2005 2004 2005 2004 2004
MEUR MEUR MEUR MEUR MEUR
Fiskars Brands -28.5 11.1 -3.1 41.8 48.5
Inha Works 0.6 0.4 3.2 2.8 3.6
Real Estate 1.3 2.0 1.9 3.4 5.2
Eliminations and other oper. -1.1 -1.0 -3.5 -3.8 -5.2
OPERATING PROFIT -27.6 12.5 -1.5 44.2 52.1
Associated company Wärtsilä 4.8 4.5 16.9 13.8 26.7
Gain on sale of Wärtsilä shares 49.8
Financial cost net -0.9 -2.1 -4.9 -2.9 -3.8
RESULT AFTER FINANCIAL ITEMS -23.7 14.9 60.4 55.1 75.0
SEGMENTINFORMATION 7-9 7-9 1-9 1-9 1-12
DEPRECIATION AND AMORTIZATION 2005 2004 2005 2004 2004
ACCORDING TO PLAN MEUR MEUR MEUR MEUR MEUR
Fiskars Brands 37.7 5.4 48.3 16.3 22.7
Inha Works 0.2 0.2 0.7 0.6 0.8
Real Estate 0.3 0.3 0.9 0.8 1.3
Eliminations and other oper. 0.1 0.1 0.2 0.2 0.4
CORPORATE TOTAL 38.3 5.9 50.1 17.9 25.1
SEGMENTINFORMATION 7-9 7-9 1-9 1-9 1-12
INVESTMENTS 2005 2004 2005 2004 2004
MEUR MEUR MEUR MEUR MEUR
Fiskars Brands 4.6 3.3 19.2 11.1 15.8
Inha Works 0.9 0.1 2.9 1.1 1.3
Real Estate 0.3 0.3 1.6 1.6 1.9
Assoc.comp.Wärtsilä 6.0 9.2 22.2 22.2
Other 0.1 0.1 0.4 0.6 0.6
CORPORATE TOTAL 11.9 3.8 33.3 36.6 41.8
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 9/05 9/04 12/04
MEUR MEUR MEUR
FOR THE COMPANY'S OWN
COMMITMENTS
Real estate mortgages 0 0
Pledged assets 1 1
Bills of exchange 0 0 0
Lease contingencies 23 36 33
Other contingencies 1 6 4
TOTAL CONTINGENCIES 24 43 38
NOMINAL VALUES OF DERIVATIVE
INSTRUMENTS
Forward exch. contracts 140 105 114
Interest rate swaps 17 40 22
FRA's 66 32 29
Currency options 4
Nominal values also include closed contracts.
RECONCILIATION OF NET PROFIT 1-9 1-12
2004 2004
MEUR MEUR
NET PROFIT ACCORDING TO FAS 30.5 44.9
Change in biological assets 1.7 2.0
Revenue recognition -0.3 -0.2
Inventory valuation -0.2 -0.1
Employee benefits -0.4 3.1
Development costs 0.1 0.1
Goodwill amortization and impairment 3.1 2.5
Finance leases 0.5 -0.5
Deferred tax effect -0.9 -2.8
Assoc. comp. Wärtsilä 2.5 5.8
Other adjustments 0.0 -0.2
NET PROFIT ACCORDING TO IFRS 36.6 54.6
RECONCILIATION OF EQUITY 1.1. 30.9. 31.12.
2004 2004 2004
MEUR MEUR MEUR
EQUITY ACCORDING TO FAS 348.3 360.8 318.8
Biological assets 28.7 30.4 30.4
Cancellation of revaluations -9.8 -9.8 -9.8
Re-valuation of real estate 1.1 0.9 0.9
Revenue recognition -0.8 -1.0 -0.8
Inventory valuation -2.6 -3.2 -2.4
Employee benefits -9.7 -9.7 -6.6
Development costs 2.5 2.6 2.5
Goodwill amortization and impairment 0.0 3.8 3.5
Financial leasing 0.0 -0.4 -0.4
Deferred tax -2.9 -3.8 -6.0
Assoc. company Wärtsilä 0.0 3.6 5.3
Other adjustments 0.0 0.4 0.3
TOTAL IFRS RESTATEMENT 6.3 13.7 16.9
EQUITY ACCORDING TO IFRS 354.6 374.5 335.8