Stock Exchange Release 16.2.2005 08.30 am



Net sales of EUR 127 million (132) during the period from
October to December were 4% lower than in the previous
year. The decrease in sales is attributable to foreign
exchange fluctuations.  The average USD foreign exchange
rate in Q4 2004 was 9% lower than in the previous year.
Growth in sales volume of other product groups
compensated for the drop in sales of garden furniture

Gross profit margin improved in Q4 2004 to 29.8% (27.2%).
There were no charges recognized in Q4 2004 corresponding
to the asset and goodwill impairment losses of EUR 75.6
million recognized in Q4 2003. Profit from operations
before exceptional items of EUR 5.7 million (-75.7) was
considerably better than in the previous year
representing an operating profit margin of 4.5%.

Income from associated company of EUR 9.7 million (0)
reflected a solid fourth quarter performance by Fiskars’
associate, Wärtsilä. Net financial expenses including
other financial income from long-term investments, grew
slightly from the previous year to EUR 1.2 million (0.4).
Profit before taxes was EUR 14.2 million (-75.3) and net
profit was EUR 14.5 million (-43.9).

Report by the Board of Directors 2004

Consolidated net sales decreased from the previous year
by 4.0% to EUR 597 million (620). Net sales before USD
foreign exchange losses grew by 2.0% from previous year.
Therefore, fluctuations in the USD foreign exchange rate
accounted for a 6.0% decrease in net sales from the
previous year.

Industrial operations consisting of Fiskars Brands Inc.
and Inha Works generated operating profit of EUR 40.8
million compared to previous year’s loss of EUR -48.9.
Garden furniture operations incurred non-recurring losses
of EUR 3.9 million while previous year restructuring
costs consisted of asset and goodwill impairment losses
of EUR 84.2 million.

Improvement in the profitability of Real Estate
operations yielded good results.

Consolidated operating profit of EUR 39.0 million (-51.9)
representing a margin of 6.5% (-8.4%) was a clear
improvement over previous year.

The Fiskars’ share of income from associated company
Wärtsilä in 2004 amounted to EUR 20.9 million. In the
previous year, income from Wärtsilä dividends of EUR 25.6
million was recognized in income from investments.

Net financial expenses remained level with the previous
year at EUR 9.5 million (9.4) and profit before taxes
improved to EUR 56.7 million (-30.0).

Profit for the financial year and earnings per share
amounted to EUR 44.9 million (-12.8) and EUR 0.58 per
share (-0.16), respectively. In the current year, return
on equity and return on invested capital were 13.5% and
12.3%, respectively, while both ratios were negative in
the previous year.

The board of directors proposes the payment of dividends
on Series A shares and Series K shares amounting to EUR
0.30 per share and EUR 0.28 per share, respectively,
totaling EUR 22.8 million.

The extraordinary general meeting decided to increase the
company’s share capital through a bonus share issue in
December. As a result, all key figures per share
presented in this report have been adjusted for the
effects of the bonus issue.  Dividends declared for 2003
and paid in March 2004 adjusted for the effects of the
bonus issue amounted to EUR 0.22 per Series A share and
EUR 0.21 per Series K share. Bonus issue adjusted amounts
for extra dividends paid in December total EUR 0.71 per
Series A share and EUR 0.70 per Series K share. Total
dividends declared for 2003 and paid in 2004 amounted to
EUR 71.8 million.

Financial statements for the 2004 financial year have
been prepared in accordance with generally accepted
accounting principles in Finland. With the first interim
report of 2005, Fiskars shall begin applying
International Financial Reporting Standards (IFRS) in the
preparation of its financial statements.


Fiskars Brands

The 5% decrease in Fiskars Brands net sales of EUR 561
million (589) is wholly attributable to weakening in the
USD foreign exchange rate. The amount of USD denominated
sales increased slightly representing 58% (61%) of total

Imports from low cost countries for certain products are
competitively priced and of moderate quality. As a
result, Fiskars Brands was not able to fully adjust sales
prices to cover the effect of raw material input price
increases. In particular, the prices for steel and
plastic raw materials rose significantly during the

Despite the decrease in net sales, profit before
exceptional items improved from the previous year and was
EUR 41.0 million (32.8). Profit after exceptional items
improved and was EUR 37.5 million (-51.4) improved.
Exceptional items amounted to EUR 3.5 million (-84.2).
Profitability was enhanced through production
efficiencies, increased subcontracting and new product
development. Fiskars Brands office in Shanghai, which is
primarily subcontracting in the Far East, has grown

Disposal of loss-making garden furniture operations in
September resulted in a EUR 3.9 million realized loss.
The disposal of the seasonal business was not finalized
in time to have a significant effect on Fiskars Brands
net sales or profits.

In North America net sales of FISKARS branded sales of
school, office and crafts supplies decreased by 12.0%
although profitability was maintained at a good level.
New management was appointed during the last quarter in

FISKARS garden tools and home and leisure products were
combined into one product group in the United States.
These products partly share a common distribution channel
creating the potential for marketing and logistics
efficiencies. Net sales have decreased slightly from the
previous year. Profitability was negatively impacted by
non-recurring expenses from operational and
administrative rationalizations.

USD denominated sales of GERBER and WINCHESTER branded
products distributed mainly in the United States as
leisure, camping and hunting related products grew 44.0%.
Profitability of these products also improved. The
product range was expanded in January 2004 to include LED
technology travel and pocket flash lights.

Net sales of consumer electronics products sold in the
Unites States under the POWER SENTRY and NEWPOINT brands
grew substantially by 11.0% while profitability remained
on the same level as in the previous year.

Housewares are a significant product group in Europe.
Belonging to this product group, there are a number of
nationally recognized brands including FISKARS, RAADVAD
and MONTANA. During the current period, several new
kitchen knife series were launched for European markets.
These products will be sold in the current financial
period. Sales of housewares have grown particularly in
the Nordic countries.

Net sales in Europe remained even with the previous year.
Overall economic development has fluctuated and remained
at modest levels. Great Britain has assumed Germany’s
position as the largest single market. Net sales have
grown in Denmark, Finland and Norway. The Billnäs factory
has invested in product efficiency improvements and
shipments to Europe have grown.

Inha Works

Net sales at Inha Works grew by 21.0% to EUR 29.2 million
(24.2). The domestic boat market grew and the sale of
Buster boats surpassed the average growth in the market.
Exports to Norway and Sweden also grew considerably. The
strong increase in sales caused temporary problems with
production capacity, particularly for the new Buster XL.
During the financial period, capital expenditures were
made in surface treatment line and all middle size and
bigger boat models will be painted. The demand for other
products has continued at a good rate. Operating profit
at Inha Works improved to EUR 3.3 million (2.5).

Real Estate Operations

Operating profit from the real estate operations was
positive and the development of operations continued in
accordance with the strategy. Fiskars Village is a major
part of the real estate operations. Historical values
have been preserved in the ironworks village founded in
1649. New activities have replaced its original
industries. The operating unit leases real estates to
both Finnish Fiskars companies and external customers
especially in the Fiskars Village area.
Real Estates Group manages totally 15 000 hectars of real
estates. Of the land areas, 120 hectares have been
designated as nature reserves (Natura) in 2004.


During the financial period, EUR 19.6 million (26.7) was
invested in industrial operations.  Investments consisted
mainly of two fairly small acquisitions whereby new
products were acquired for the Fiskars Brands leisure
product group.  The other capital expenditures in Fiskars
Brands were made for the purpose of maintaining
production capacity as well as enhancing operational
efficiency and the use of information technology. The
largest individual capital expenditures have been made to
improve efficiency at the Billnäs factory in Finland

Capital expenditures at Inha Works included investment in
a surface treatment line and factory expansion.


Fiskars increased its share in Wärtsilä Corporation at
the end of the first quarter 2004 by acquiring 824 146 A
shares and 376 333 B shares for a purchase price of
approximately EUR 22.0 million. Fiskars is Wärtsilä’s
largest shareholder holding 20.54% of share capital and
28.07% of the voting rights.

Fiskars has applied the equity method since the beginning
of 2004 to account for its investment in Wärtsilä.

Income from associated company after goodwill
amortization for 2004 was EUR 20.9 million. The book
value for investment in associated company in the
consolidated balance sheet totaled EUR 212.6 million,
consisting of EUR 192.2 million of the Fiskars’ share of
the equity and EUR 20.3 million of goodwill. In the prior
year balance sheet, Wärtsilä’s shares have been
recognized at their original acquisition cost.

The book value for Wärtsilä shares in the parent company
was EUR 214.0 million (192.0). The market value of the
Wärtsilä shares was EUR 295.0 million at the balance
sheet date.


Fiskars focuses on direct industrial ownerships. As part
of this strategy, investments totaling EUR 25.0 million
were sold including investments in the EQT funds. At the
end of the financial period, only insignificant holdings
of fund investments remained.  Income from investments in
2004 amounted to EUR 6.3 million.  Income from long-term
investments in 2003 amounted to EUR 31.3 million and
consisted mainly of dividends paid by Wärtsilä.


Cash flow from operations was EUR 84.4 million (83.6).
Additional assets were released from working capital and
depreciation exceeded the capital expenditures in
industrial operations. Cash flow from long-term
investments was clearly positive.

Fiskars’ capital structure changed at the end of the
financial year when the Board of Directors decided to
issue a capital loan to shareholders. The loan was
oversubscribed and its total value determined by a Board
decision was EUR 45.1 million. In accordance with the
Finnish Companies Act, the loan has been classified as a
capital loan. The loan bears interest at 6.25% and may be
repaid in full at any time prior to its maturity in 5.5
years only if the parent company and the consolidated
shareholders’ equity are left with full cover on
restricted equity and other non-distributable equity.

Consolidated net debt fell to EUR 184.3 million (198.6)
and the net debt to equity ratio was 58.0% (57.0%). Cash
and cash equivalents at the balance sheet date were EUR
15.6 million (16.9) and considerable unused credit limits
at year end are a sign of solid group liquidity. Net
interest expenses were level with the previous year at
EUR 9.5 million (9.4).

Consolidated shareholders’ equity was EUR 318.8 million
(348.3) at the year-end.  Dividends from 2003 totaling
EUR 71.8 million (60.3) reduced shareholders’ equity.
The gearing ratio remained at a reasonable level at 50%

Consolidated total assets decreased to EUR 635.0 million
(678.4).  Fixed assets and other long-term investments
decreased by EUR 18.0 million to EUR 371.5 million
(389.5). Goodwill comprises of both Fiskars Brands
operations and the Wärtsilä associated company. The book
value of industrial fixed assets was EUR 115.0 million
(134.8). The most significant long-term investment was
the share of the Wärtsilä.


At the end of the year the total number of personnel was
3 448 (3 877). The number in the United States decreased
by 462 to 1 481 due mainly to the disposal of garden
furniture operations, which accounted for 344 of the
total personnel decrease.  Personnel decreased also as a
result of the streamlining of operations. The number of
employees in Finland totaled 915 (873), of which 248
(202) are employed at Inha Works.


There were no changes during the financial year in the
parent company management group.  Heikki Allonen, M.Sc.
continued as CEO and President. William J. Denton acted
as CEO of Fiskars Brands until September and remains
available at the request of the board. James S. Purdin
was appointed as CEO of Fiskars Brands on 15 October
2004. He has been Fiskars Brands Chief Operating Officer
since beginning of 2003.
Jukka Suonperä M.Sc continued as CEO of Inha Works.


Fiskars complies with the directive on administrative and
corporate governance rules for stock exchange listed
entities as published by Helsinki Stock Exchange and the
Federation of the Chamber of Commerce, Industry and
Employers (KTT) and taking effect on 1 July 2004.


In the Fiskars Corporation’s annual general meeting held
on 16 March 2004, total dividends of EUR 16.8 million
were declared on A Series (EUR 0.22 per share) and K
Series shares (EUR 0.21 per share).

The number of Board members and deputy Board members was
set at seven and one, respectively. Re-elected board
members included Göran J. Ehrnrooth, Mikael von
Frenckell, Gustaf Gripenberg, Olli Riikkala and Thomas
Tallberg. Paul Ehrnrooth and Ilona Ervasti-Vaintola were
elected as new members to the Board. Alexander Ehrnrooth
was appointed deputy Board member. The mandate for all
Board and deputy Board members ends on the date of the
2005 annual general meeting.

KPMG Oy Ab was reappointed as auditor, Sixten Nyman,
Authorized Public Accountant, as a principal auditor.

The annual general meeting authorized the Board of
Directors to acquire and dispose during a one-year period
company’s shares to maximum 2 617 724 Series A shares and
1 127 865 Series K shares. All previous authorizations
were cancelled.

Göran J. Ehrnrooth was elected Chairman of the Board.
Mikael von Frenckell was elected Vice-Chairman of the


As proposed by the Board of Directors, Fiskars
Corporation’s extraordinary general meeting in 3 December
2004 declared an extra dividend for the year ended 31
December 2003. Series A and Series K shareholders
received extra dividends of EUR 0.71 per share and EUR
0.70 per share, respectively, representing a total
dividend payment of EUR 55.0 million.

The decision was also reached to increase the Company’s
share capital from EUR 55 364 430 to EUR 77 510 200
through a stock dividend issue.  Series A shareholders
received a two for five stock dividend resulting in a
total stock issue of 15 698 426.  Series K shareholders
received a two for five stock dividend resulting in a
total stock issue of 6 447 344. All shares have a EUR
1.00 per share calculatory nominal value.  All new shares
issued are entitled to full dividend rights for the year
ended 31 December 2004.

General meeting also decided to sell the company’s
shares, which have not been transferred into book-entry
securities system, on behalf of the owners.


During the financial year 2004, the Board has exercised
the authority granted in the 2003 Annual General Meeting
regarding the acquisition and reissue of treasury shares.
Treasury shares amount to 127 512 Series A treasury
shares and 420 Series K treasury shares at 31 December
2004. The respective average prices for Series A and
Series K shares are EUR 7.05 per share and EUR 7.50 per
share. The Board has not exercised the authority granted
in the 2004 Annual General Meeting regarding the
acquisition and reissue of treasury shares.


The market price of Fiskars shares on the Helsinki
Exchanges rose during the year by 14.0% and was 31
December 2004 EUR 612 million (537). The share prices for
Series A shares and Series K shares were EUR 7.90 per
share (6.71) and 7.90 per share (7.46), respectively.

In 2004, the trading volume of Fiskars shares totaling
EUR 114 million (44) more than doubled the trading volume
in the previous year. The respective trading volumes for
Series A shares and Series K shares were 11.7 million
shares (6.2) and 3.2 million shares (0.6).  The total
trading volume for all Fiskars shares was 19.1% (8.9%) of
total shares.


The structure of Fiskars’ operations and portfolio has
been streamlined during the financial year 2004. The
balance sheet will stay solid and liquidity will remain
good given the positive cash flow.

The Company’s market is characteristically seasonal and
the first half of the year is important for the products.
Significant changes in the market conditions are not
expected although the spring season has begun at a slower
pace than in the previous year.

Fiskars will continue developing its core businesses.
In the coming year, the focus will be on improving the
competitiveness and operational efficiency of the
Company’s factories relative to competitors from low cost
countries. At the same time, logistical operations will
be developed to strengthen sourcing operations.

Due to the structural changes implemented during the
previous fiscal period and the exchange rate of the
dollar, net sales are not expected to increase in the
present period.

Income from associated company, Wärtsilä, still forms an
important part of Fiskars consolidated profit.

The operating profit in the Company’s industrial
operations is expected to remain at a slightly lower
level in the first quarter than in the previous year.
Profitability is expected to improve subsequently for the
end of the year.

CONSOLIDATED                   10-12  10-12  chg   1-12   1-12  chg
INCOME STATEMENT                2004   2003    %   2004   2003    %
                                MEUR   MEUR        MEUR   MEUR

NET SALES                      126.7  132.2   -4  597.0  620.3   -4

Cost of goods sold             -89.0  -96.3   -8 -420.3 -448.3   -6
GROSS PROFIT                    37.7   36.0    5  176.7  172.0    3

Other operating costs          -32.4  -36.1  -10 -134.1 -139.6   -4
Restructuring cost               0.4  -75.6        -3.5  -84.2
OPERATING PROFIT                 5.7  -75.7  108   39.0  -51.9  175

Share of assoc.comp.result       9.7               20.9
Income from investments          0.9    0.2         6.3   31.3
Other financial income           0.2    2.7  -91    0.5    2.1  -77
Financial expense               -2.4   -2.5   -5  -10.0  -11.5  -13
PROFIT BEFORE TAXES             14.2  -75.3        56.7  -30.0

Taxes for the period             0.3   31.5       -11.8   17.2
PROFIT FOR THE PERIOD           14.5  -43.9        44.9  -12.8

Earnings per share, euro        0.19  -0.57        0.58  -0.16

Currency rates:                10-12  10-12  chg   1-12   1-12  chg
                                2004   2003    %   2004   2003    %

USD average rate (I/S)          1.30   1.19    9   1.24   1.13   10
USD end-of-period (B/S)         1.36   1.26    8   1.36   1.26    8

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

Fixed assets                   174.9  173.6    1
Long-term investments          196.5  215.9   -9
Inventories                    110.9  124.4  -11
Financial assets               152.6  164.6   -7
TOTAL                          635.0  678.4   -6


Share capital                   77.5   55.4   40
Other equity                   241.3  293.0  -18

CAPITAL LOAN                    45.1
PROVISIONS                       7.3    8.9  -18

Long-term                       98.2  123.4  -20
Short-term                     165.5  197.8  -16
TOTAL                          635.0  678.4   -6

KEYFIGURES                     12/04  12/03  chg
Equity/share, euro              4.11   4.49   -8
Equity ratio                     50%    51%
Net gearing                      58%    57%
Equity, meur                   318.8  348.3   -8
Net interest-bear.debt, meur   184.3  198.6   -7
Gross investments, meur         41.2   37.8    9
Average number of employees     3782   3633    4

CONSOLIDATED STATEMENT         10-12  10-12        1-12   1-12
OF CASH FLOWS                   2004   2003        2004   2003
                                MEUR   MEUR        MEUR   MEUR
From oper. activities           33.6   -1.9        84.4   83.6
From investm. activities        -1.6    0.8        -7.5  -22.4
From financing                 -22.7   -5.4       -77.9  -63.8
CHANGE IN CASH                   9.4   -6.4        -1.0   -2.6
Cash at beginning of period      6.6   23.2        16.9   19.5
Currency transaction adjustm.   -0.4    0.0        -0.3   -0.1
CASH AT END OF PERIOD           15.6   16.9        15.6   16.9

NET SALES                      10-12  10-12  chg   1-12   1-12  chg
BY BUSINESS AREA                2004   2003    %   2004   2003    %
                                MEUR   MEUR        MEUR   MEUR
Fiskars Brands                   119    125   -5    561    589   -5
Inha Works                         6      5   22     29     24   21
INDUSTRY TOTAL                   125    131   -4    591    613   -4
Corporate & real estate            3      3    5      9     10   -3
Eliminations                      -1     -1    4     -3     -3    4
CORPORATE TOTAL                  127    132   -4    597    620   -4

RESULT                         10-12  10-12        1-12   1-12
BY BUSINESS SEGMENT             2004   2003        2004   2003
                                MEUR   MEUR        MEUR   MEUR
Fiskars Brands                   4.8  -75.2        37.5  -51.4
Inha Works                       0.6    0.1         3.3    2.5
INDUSTRY TOTAL                   5.4  -75.1        40.8  -48.9
Corporate & real estate          0.4   -0.6        -1.7   -3.0
OPERATING PROFIT                 5.7  -75.7        39.0  -51.9
Share of assoc.comp.result       9.7               20.9
Income from investments          0.9    0.2         6.3   31.3
CONSOLIDATED SEGMENTAL RESULT   16.3  -75.5        66.2  -20.6

NET SALES                      10-12  10-12  chg   1-12   1-12  chg
BY MARKET AREA                  2004   2003    %   2004   2003    %
                                MEUR   MEUR        MEUR   MEUR
Finland                            9      9    6     41     38    9
Scandinavia                       16     15    6     62     57    9
Other Europe                      21     21    2    115    119   -3
North America                     74     82   -9    357    389   -8
Other                              6      6    3     21     18   22
CORPORATE TOTAL                  127    132   -4    597    620   -4

Export from Finland               15     12   17     56     53    6

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                  12/04  12/03
                                MEUR   MEUR
Real estate mortgages              0      1
Pledged assets                     1      0
Bills of exchange                  0      1
Lease contingencies               40     54
Other contingencies                4      8
TOTAL CONTINGENCIES               45     64


Forward exch. contracts          114     91
Interest rate swaps               22     87
FRA's                             29     36


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

Nominal values also include closed contracts.