Fiskars Oyj, the Finnish maker of scissors and Gerber knives, rose the most in almost two years as the acquisition of porcelain maker Royal Copenhagen A/S in January added to earnings earlier than analysts expected.
Fiskars climbed as much as 7.7 percent, the most since September 2011. Shares in the Helsinki-based company advanced 5.1 percent to 18.70 euros at 12 p.m. in the Finnish capital. Trading volume was almost twice the three-month daily average.
“Fiskars’ result was clearly better than expected,” analysts at FIM Bank Oyj, including Mona Grannenfelt, wrote in a note to clients. Earnings in the Europe, Middle East and Asia-Pacific region were “significantly better than anticipated, as we expected Royal Copenhagen to show up in profitability more meaningfully only during the last quarter of the year.”
Royal Copenhagen, which Fiskars acquired for 490 million kroner ($87 million) in January, proved an “excellent strategic fit,” Fiskars’ Chief Executive Officer Kari Kauniskangas said today in a statement.
Fiskars’ second-quarter earnings before interest and taxes grew 32 percent from a year earlier to 26.1 million euros ($35 million). The surge was driven by the EMEA region, which more than doubled its Ebit from the previous quarter.
“The company succeeded in turning around its difficult start to the year despite a challenging market situation, which suprised us positively,” Timo Rahkonen, an analyst at Inderes Oy in Helsinki, wrote in a note. “In addition to Royal Copenhagen, the company’s growth was backed by improvement in garden product sales and home business growth.”