Patria Group Interim Report for 1 January–30 June 2017
Patria Group’s result for the first half of the financial period was at the estimated level. Net sales totalled EUR 221.8 million, compared to EUR 253.6 million in the previous year (-12.5%). Operating profit decreased to EUR 15.4 million from EUR 40.8 million in 2016. Equity ratio was 52.0% (50.3%) and net gearing 29.6% (23.9%). The value of the order book fell to EUR 803.8 million from EUR 974.4 million a year earlier. A large part of the new orders received during the period is linked to the Aviation business and its maintenance and life-cycle support services for the military aviation sector. The decrease in operating profit is mainly due to fluctuations and delayed decision making process in international projects.
First half of 2017
In February, it was announced that Patria Pilot Training will continue as a training partner of the Finnish Aviation Academy at its new training base at Tampere-Pirkkala Airport. Patria will be responsible for flight and theoretical training of 20 cadets to obtain a commercial pilot license.
Patria attended IDEX 2017 event in February in Abu Dhabi, UAE and featured its latest technology such as Patria Nemo Container - the world’s first 120 mm mortar system integrated with a container. Patria showcased also the new Patria AMV28A and Patria AMV Part Task Trainer training system.
In March Patria Pilot Training and Nordic Regional Airlines, Norra, signed an agreement on ab-initio pilot training.
In April, Norwegian Defence Logistics Organisation (NDLO) selected Patria to supply on-aircraft maintenance for the Norwegian NH90 helicopters. The agreement is for two years with option for additional two years and its value is estimated to be up to 100 million NOK.
In April, Sami Pitkänen, 46, was appointed as the new President of Millog. He has started on 1 August 2017.
In May, Patria’s Aerostructures business unit finalized its employee co-operation negotiations due to the reductions in the order book concerning certain product lines. The final result of negotiations affected seven persons as redundancies and temporary lay-offs. Additionally, up to 40 persons was be laid off for fixed 3-6 weeks during the summer.
The Finnish military aviation authority handed over the Military Designs Organisation Approval (MDOA) based on the European Defence Agency’s European Military Airworthiness Requirements (EMAR) to Patria in May. Patria is the first organization to receive the approval in Finland.
In May, Patria was ranked as the 29th most attractive Finnish employer among engineering and natural science students and as the 30th among IT students based on the latest Universum student survey.
Patria and the American company S&K Logistic Services have a teaming agreement to offer landing gear overhaul to F/A-18 (Hornet) customers. In May, the companies showcased their services at The Naval International Aviation Logistics Process Improvement Team (LPIT) Workshop in Louisville, Kentucky, USA.
Patria AMV28A vehicle completed successfully the swimming tests organised in the end of May in Finland. With a total weight of 28 tonnes the vehicle swam without difficulties during rather strong wind conditions, constant wind speed being 10-13 m/s, in gusts more than 17 m/s.
Patria's Engines Unit, part of the Aviation Business Unit, celebrated its 70 years heritage in June. The unit is a significant part of Patria's history but has played an important role in the Finnish aviation history as well.
In June, Patria received four new Diamond DA40 NG training aircraft for the civil pilot training unit.
Outlook for the rest of the year
The development of the order stock depends on whether certain large export projects, now at the tendering stage, will be launched on international markets. The delayed decision making process in certain international projects brings further uncertainty to the forecast. Though this year as a whole will financially be reasonably satisfactory, there will be notable differences between the business units. To ensure productivity and to increase cost-effectiveness and flexibility of its operations both in short and long term, Patria has started group level co-operation negotiations in the end of August.
For more information, please contact:
Ville Jaakonsalo, Chief Financial Officer, tel. +358 500 881 070, [email protected]
Birgitta Selonen, Chief Communications Officer, +358 40 869 2043, [email protected]
Patria is a trusted provider of defence, security and aviation life cycle support services and technology solutions. Besides Finland, the Group has operations in Sweden, Norway, Estonia, Poland, the United Arab Emirates, the United States and South Africa. Patria employs 2,800 professionals. Patria is owned by the State of Finland (50.1%) and Norwegian Kongsberg Defence & Aerospace AS (49.9%).
