Corporate Net Sales in the last quarter of the year totalled EUR
132 million (143), which was 8 percent less than in the previous
year. Calculated in comparable currency rates, sales increased.
Compared to the previous year, the average rate of the euro was 19
per cent higher against the dollar.

In the last quarter, Fiskars Corporation booked non-recurring
items in form of impairments of goodwill and write-downs of
tangible fixed assets associated mainly with the pottery and
outdoor furniture businesses as well as restructuring reserves to
a total of EUR 75.6 million. The parent company correspondingly
booked devaluations in subsidiary shares and receivables. In part,
these have been approved as tax deductible. A deferred tax asset
of EUR 24.2 million was thus generated and has correspondingly
improved the net profit.

The quarterly operating results before restructuring expenses were
on level with those of the previous year, EUR –0.1 million (–0.1).
After non-recurring items, operating results were EUR –75.7
million (–0.3).

Net financial items including investment income were EUR 0.4
million positive compared to (–1.9) in the previous year.
Corporate profit before taxes was EUR –75.3 million (–2.3) and
taxes for the period totalled an income of EUR 31.5 million (3.9).
Therefore, the net result for the last quarter showed a loss of
EUR 43.9 million (1.6).


Corporate net sales were EUR 620 million (725), a decline of 14
percent compared to the previous year. The decline was partly due
to structural changes within the corporation, but mainly a
consequence of the dollar weakening against the euro.

Operating profits from the corporation’s industrial operations
were EUR –48.9 million (29.8), burdened by the impairments of
goodwill and devaluations of tangible fixed assets totalling EUR
84.2 million (19.5).

The Real Estate Group operating results were positive.

The Corporation’s operating profit was EUR –51.9 million (27.9).

Income from long-term investments totalled EUR 31.3 million
(59.0). Net financial items were reduced from the previous year to
EUR 9.4 million (14.8) and the profit before taxes was EUR –30.0
million (72.1).

A substantial part of the parent company’s devaluation of
investments in subsidiaries will be tax deductible and therefore a
deferred tax asset totalling EUR 24.2 million has been booked.
This resulted in a positive net tax of EUR 17.2 million for the
financial period, when taxes for the previous period were expenses
totalling EUR 22.5.

The net profit for the year was EUR –12.8 million (49.6) and
earnings per share EUR –0.23 (0.90).

The Board of Directors proposes a dividend of EUR 0.31 per share
of series A and EUR 0.29 per share of series K for the year 2003.
Thus the 2003 dividend distribution would be EUR 16.8 million. In
March 2003, a dividend for the year 2002 was paid in the amount of
EUR 0.70 per share of series A and EUR 0.68 per share of series K
and in December an extra dividend of EUR 0.40 per A share and EUR
0.38 per K share was paid. Thus the dividend distribution for the
year 2002 was EUR 60.3 million.


Fiskars Brands, Inc.

Price pressure in consumer products increased - particularly for
resin based products in the United States. Manufacturing in Asia
continued to increase its price competitiveness compared to
producing goods in the West. This had a negative influence on both
net sales and profitability and in part caused the impairment in
the balance-sheet values of assets. Net sales of Fiskars Brands,
the corporation’s overwhelmingly largest division, were EUR 589
million (693), a decline of 15 percent compared to the previous
year. Calculated at comparable currency rates the decline was 3.5

Of the sales 63 percent (68) were generated in North America and
although the North American share of total net sales was lower
than in the previous year, in dollars the amount was at the level
of 2002. Europe’s share of total net sales was 31 percent (29).

In North America, a decline of 6 percent in sales of FISKARS-
branded school, office and crafts products was partly due to
structural changes. However, profitability remained good.

Sales volumes and profitability increased in garden products, most
of which sell under the FISKARS brand. The range and sales volume
of products made in Billnäs, Finland, increased also in the US.

Sales of outdoor recreation products, most of which are GERBER
branded, increased by 41 percent in dollars, and the level of
profitability remained good.

Sales of home leisure products, mainly plastic flower pots,
developed very unsatisfactorily, and profitability was further
deteriorated by higher raw-material costs and the low utilization
level of production capacity.

Sales of outdoor resin furniture fell, and the business showed a

Sales of consumer electronics declined by approximately 17
percent, but profitability was maintained.

Houseware products which together with garden products form the
core of European sales, developed favourably. Sales in Finland
continued to grow, whereas weakening of the markets in Germany and
Britain were reflected in the sales figures. Increased production
volumes at the factory in Billnäs and the reorganization of
European marketing channels improved profitability, despite a fall
of 4 percent in total net sales in Europe.

Operations were extended into Asia by founding subsidiaries in
Japan and China: in Japan to manage local sales and marketing and
in China to further develop outsourcing. During the year the
Bucket Boss product line was divested, and in January 2004 Fiskars
Brands. acquired CMG Equipment, a US manufacturer of camping
lights and flashlights, to be included in the Gerber operations.

The operating profit of Fiskars Brands was EUR –51.4 million
(27.3) including non-recurring items totalling EUR 84.2 million

Inha Works

Inha Works net sales were EUR 24,2 million (23,3), an increase of
4 percent. Boat sales increased both in Finland and the export
markets. Sales and production of new products began well; the
Buster M and the new Buster XL are being produced in series. The
demand for other products remained level with that of the previous
year. The operating profit was EUR 2.5 million (2.5).

Real Estate Operations

Operating profit from the real estate operations was slightly
lower to those of the previous year, but were clearly positive.
Fiskars Village is a major part of the real estate operations and
in latter years its significant development has increasingly
generated positive recognition for the corporation. Historical
values have been preserved in the more than 350 years old
ironworks village. New activities have replaced its original


At the end of the year, the total number of personnel was 3,877
(4,206). The decrease was due to rationalization of both
production and distribution in the US and in Europe. The
Corporation employed a total of 2,096 (2,330) people in North
America, and 873 (908) in Finland.


Capital expenditure in industrial fixed assets totalled EUR 26.7
million (31.0). Long-term investments counted for EUR 11.0 million
(4.2), mostly in form of Wärtsilä shares.

Fiskars ownership of Wärtsilä shares at the end of the year was
19.2 percent of the capital and 24.4 percent of the votes. At the
end of December the market value of Fiskars Wärtsilä shares was
EUR 175 million. On February 9, Wärtsilä’s market value exceeded
the book value of the shares.

Fiskars has long-term investments in private equity funds with a
market value of some EUR 27 million, according to estimates from
the funds.

The long-term investment yield of EUR 31.3 million (59.0) mostly
consists of Wärtsilä dividends. Returns from the equity funds were
higher than those for the previous year.


The Corporation’s cash flow continued to be positive, amounting to
EUR 83.6 million (130.0). As in the previous year working capital
was released, with EUR 11.9 million (21.4) being released from
inventories. Net gearing remained low at 57 percent (57). The
Corporation’s interest-bearing liabilities decreased to EUR 216
million from EUR 266 million in the previous year.

Solvency was good. In addition to significant unused available
credit limits, the corporation had liquid assets totalling EUR
16.9 million (19.5) at the end of the year.

Net financial costs continued to decline strongly to EUR 9.4
million (14.8). This was due to a decrease in interest-bearing
debt and to lower average interest rates.

Shareholders’ equity at the end of the financial period was EUR
348 million (429). Even after restructuring expenses and
distribution of substantial dividends, the equity ratio remained
good at 51 percent (53).

The balance sheet total was EUR 678.4 million. That is 16 percent
less than the total of EUR 809.3 million for the previous
financial year. After the deduction of the impairment during the
financial period, the remaining goodwill associated with Fiskars
Brands operations is EUR 33.0 million (102.2). The deductions will
further more reduce the amount of future annual amortization of
goodwill. The dollar weakened 20 percent against the euro. This
reduced the balance sheet value of industrial fixed assets by
approximately EUR 20 million. As in previous years, long-term
investments in fixed assets are shown at cost; Wärtsilä shares at
EUR 192 million or 16.72 per share and investments in private
equity funds at EUR 21 million.


Mr. Heikki Allonen, M.Sc. (Eng.), was appointed Chief Executive
Officer and Corporate President in April. He assumed his post on
June 16, 2003. Mr. Bertel Langenskiöld resigned as CEO on May 15,
2003. In the interim, Mr. Ingmar Lindberg, Corporate Executive
Vice-President, acted as President.

Mr. William J. Denton was President and CEO of Fiskars Brands,
Inc. throughout the year.

Mr. Jukka Suonperä, M.Sc. (Eng.) assumed his post as President of
Inha Works on April 1, 2003.

Mr. Johan Landsdorff, LL.M., was appointed Corporate Vice-
President and Legal Counsel on April 1, 2003, and Ms. Maija
Kutvonen, B.Sc. (Econ.) was appointed Vice-President, Corporate
Control, as from November 17, 2003.


The Fiskars Corporation Annual General Meeting, held on March 13,
2003, decided to declare a dividend of EUR 0.70 per A share and
EUR 0.68 per K share, in total EUR 38.4 million.
The Articles of Association were amended to provide that the
minimum number of Board members shall be five and the maximum
number six, and the maximum number of deputy members shall be
three. Their term of office will be from their election to the end
of the following Annual General Meeting.
The retiring members Mr. Göran J. Ehrnrooth and Dr. Thomas
Tallberg and the deputy members Mr. Paul Ehrnrooth and Mr.
Alexander Ehrnrooth were reelected. The term of all Board members
and deputy members will end at the close of the Annual General
Meeting in 2004.
KPMG Wideri Oy Ab was appointed auditor.
The Annual General Meeting authorized the Board of Directors to
acquire and dispose of not more than 1,962,303 A shares and not
more than 805,918 K shares in the company. The corresponding
previous authorizations were revoked.

The Board decided to exercise the authorization for share
repurchase and during the period December 10–31, 2003, the
corporation purchased 62,219 A shares and 300 K shares. The
average price per A share was EUR 9.83 and per K share EUR 10.50.
The total purchase price for the shares was EUR 615,007.05 and
their nominal value a total of EUR 62,519.00. The percentage of
equity capital held in the shares is 0.11 percent with 0.02
percent of the number of votes. Share repurchase continued in the
present financial period: between January 2 and January 16, the
corporation purchased a total of 30,281 A shares.


On December 9, 2003, the Fiskars Corporation Extraordinary General
Meeting approved a proposal to distribute an extra dividend for
the financial period ending December 31, 2002. The extra dividend
distributed was EUR 0.40 per A share and EUR 0.38 per K share, in
total EUR 21.8 million.


The price of the Fiskars A share on the Helsinki Stock Exchange
was EUR 9.40 at the end of December, compared to EUR 7.80 at the
beginning of the year. Correspondingly, the price of the K series
share was EUR 10.45 (8.10). The market value of Fiskars shares
increased by 23 percent over the year to EUR 537 million (437). A
total number of 4.5 million A shares (3.9) and 0.5 million K
shares (1.3) were traded for a total value of EUR 44 million (45).
This represented 8.9 percent of the entire share capital (9.5).


The outlook for Fiskars Brands was modestly brighter during the
last quarter of 2003 compared with the previous year. Though the
change is not big, it bodes well for the financial year started.

As restructuring and rationalization continue in the problematic
area of plastic products, the negative effects on the results will
gradually diminish. Outsourcing will increase in these product
groups, and rationalization projects will go forward.

The outlook for Inha Works is positive, particularly for the boat
operations. The Real Estate Group will continue its stable

Investment income will consist of dividends from Wärtsilä – the
proposed dividend at EUR 0.75 per share would result in a
distribution of EUR 8.6 million for Fiskars’ stake in the company
– and possible returns from fund investments.

Continuing strength of the balance sheet provides a solid base and
liquidity will remain good given the positive cash flow.

Heikki Allonen

CONSOLIDATED                  10-12  10-12   1-12   1-12 change
INCOME STATEMENT               2003   2002   2003   2002      %
                               MEUR   MEUR   MEUR   MEUR

NET SALES                     132.2  142.9  620.3  725.5    -14

Cost of goods sold            -91.6  -99.0 -426.0 -501.5    -15
GROSS PROFIT                   40.6   43.9  194.3  224.0    -13

Other operating costs         -40.7  -44.1 -161.9 -176.6     -8
RESTRUCTURING ITEMS            -0.1   -0.1   32.4   47.4    -32

Restructuring cost            -75.6   -0.2  -84.2  -19.5    332
INTEREST AND TAXES            -75.7   -0.3  -51.9   27.9   -286

Income from investments         0.3   -0.1   31.3   59.0    -47
Other financial income          2.7    1.1    2.1    1.5     47
Financial expense              -2.6   -3.0  -11.5  -16.3    -29
EARNINGS BEFORE TAXES         -75.3   -2.3  -30.0   72.1   -142

Taxes for the period           31.5    3.9   17.2  -22.5   -176
PROFIT (LOSS) FOR THE PERIOD  -43.9    1.6  -12.8   49.6   -126

Earnings per share, euro      -0.79   0.03  -0.23   0.90

CONSOLIDATED BALANCE SHEET    12/03  12/02 change
                               MEUR   MEUR      %

Fixed assets                  173.6  280.1    -38
Long-term investments         215.9  211.4      2
Inventories                   124.4  160.2    -22
Financial assets              164.6  157.6      4
TOTAL                         678.4  809.3    -16


Share capital                  55.4   55.4      0
Other equity                  293.0  373.7    -22

PROVISIONS                      8.9    5.5     61
Long-term                     123.4  183.5    -33
Short-term                    197.8  191.3      3
TOTAL                         678.4  809.3    -16

Diluted equity /share, euro    6.29   7.75    -19
Equity ratio                    51%    53%     -3
Net gearing                     57%    57%      0

GROSS INVESTMENTS              37.8   35.2      7
AVERAGE NUMBER OF EMPLOYEES    3633   4095    -11

                              10-12  10-12   1-12   1-12 change
                               2003   2002   2003   2002      %
Currency rates:
USD average rate (I/S)         1.19   1.00   1.13   0.95     20
USD end-of-period (B/S)        1.26   1.05   1.26   1.05     20

CONSOLIDATED STATEMENT        10-12  10-12   1-12   1-12
OF CASH FLOWS                  2003   2002   2003   2002
                               MEUR   MEUR   MEUR   MEUR
From oper. activities          -1.9   13.9   83.6  130.0
From investm. activities        0.8   -9.1  -22.4  -29.6
From financing                 -5.4    1.5  -63.8  -89.6
CHANGE IN CASH                 -6.4    6.4   -2.6   10.9
Cash at beginning of period    23.2   13.4   19.5    9.5
Currency transaction adjustm    0.0   -0.2   -0.1   -0.8
CASH AT END OF PERIOD          16.9   19.5   16.9   19.5

NET SALES BY BUSINESS AREA    10-12  10-12   1-12   1-12 change
                               2003   2002   2003   2002      %
                               MEUR   MEUR   MEUR   MEUR
Fiskars Brands                  125    136    589    693    -15
Inha Works                        5      5     24     23      4
INDUSTRY TOTAL                  131    141    613    717    -14
Corporate & real estate           3      3     10     12    -17
Eliminations                     -1     -1     -3     -3      3

CORPORATE TOTAL                 132    143    620    725    -14

RESULT BY BUSINESS SEGMENT    10-12  10-12   1-12   1-12
                               2003   2002   2003   2002
                               MEUR   MEUR   MEUR   MEUR
Fiskars Brands                -75.2    0.5  -51.4   27.3
Inha Works                      0.1    0.5    2.5    2.5
INDUSTRY TOTAL                -75.1    1.0  -48.9   29.8
Corporate & real estate        -0.6   -1.4   -3.0   -1.9

INTEREST AND TAXES            -75.7   -0.3  -51.9   27.9
Income from investments         0.2   -0.1   31.2   59.0
CONSOLIDATED SEGMENTAL RESUL  -75.5   -0.4  -20.7   86.9

NET SALES BY MARKET AREA      10-12  10-12   1-12   1-12 change
                               2003   2002   2003   2002      %
                               MEUR   MEUR   MEUR   MEUR
Finland                           9      8     38     37      1
Scandinavia                      15     17     57     63    -10
Other Europe                     21     21    119    130     -8
North America                    82     90    389    473    -18
Other                             6      6     18     23    -23
CORPORATE TOTAL                 132    143    620    725    -14

Export from Finland              12     13     53     51      5

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                 12/03  12/02
                               MEUR   MEUR
Real estate mortgages             1      1
Pledged assets                    0      0
Bills of exchange                 1      1
Lease contingencies              54     70
Other contingencies               8      1
TOTAL CONTINGENCIES              64     72


Forward exch. contracts          91    167
Interest rate swaps              87    105
FRA's                            36     29


Interest rate swaps              -5    -10
FRA's                             0      0

Nominal values also include closed contracts.