Patria Oyj - Financial Statements 2008

Key figures

New orders and order stock

The value of new orders received during the financial period was EUR 863.0 million (EUR 568.0 million in 2007), which included EUR 480 million for eight years received by Millog Oy from the Finnish Defence Forces. At the end of the financial period, the volume of the Group’s order stock was EUR 1 192.1 million (EUR 907.1 million).

Net sales and profitability

The Group’s net sales for January–December totalled EUR 534.6 million (EUR 541.2 million in 2007). Defence material and maintenance accounted for 86% (86%) and civilian products for 14% (14%) of the net sales. Sales outside Finland accounted for 55% (49%) of the net sales.

The Group’s operating profit for January–December was EUR 8.9 million (EUR 37.3 million), 1.7% of net sales (6.9%). The main reason for the weaker profitability compared to the previous year was the recognised impairment loss of EUR 20.6 million on capitalised development expenses of the Aerostructures Business Unit related to the Airbus A380 and A400M programs. In addition, the profitability of the Land & Armament Business Unit decreased compared to the previous year. This was mainly due to the fact that certain long-term delivery projects ended in 2008 and deliveries based on major contracts won in 2006 and 2007 started during 2008, as well as delays and other problems in certain delivery projects.

Outlook

The net sales in 2009 are estimated to increase compared to 2008, mainly due to Millog Oy having started its operations in the beginning of 2009, and the profitability is expected to improve compared to 2008. There are, however, risks in certain major delivery projects, especially the Slovenian vehicle project, which, if materialising, may have a material adverse impact on the Group’s net sales and profitability.   

In general, the demand for the Group’s products and services is expected to remain at a fair level in 2009. The crisis in the financial markets and the grown uncertainty in the global economy have, however, made the Group’s operating environment much more challenging. Customers may reduce, postpone or abandon planned procurements or request changes to existing contracts, which may impact the Group’s net sales and profitability already this year.

The Review of the Financial Year 1.1.-31.12.2008 is published on www.patria.fi.

Contact persons:  
Mr Heikki Allonen  
President and CEO   
Mobile: +358 40 869 2040   

Mr Kai Nurmio   
Executive Vice President, CFO   
Tel. +358 20 469 2020    
Mobile: +358 40 869 2020  

Patria is a defence and aerospace group with international operations delivering its customers competitive solutions based on own specialist know-how and partnerships. Patria is owned by the State of Finland and the European Aeronautic Defence and Space Company EADS N.V.
Further information: www.patria.fi