Patria Group Interim Report for 1 January–30 September 2017
Patria Group’s result for the first three quarters of the year was lower than last year. Net sales totalled EUR 309.3 million, compared to EUR 349.1 in the previous year (-11,4%). Operating profit decreased to EUR 22.8 million from EUR 53.9 million in 2016. Equity ratio was 53.7% (56.2%) and net gearing 31.1% (19.1%). The value of the order book fell to EUR 769.6 million from EUR 918.0 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 normal project business fluctuations and slow customer decision making process in international projects related to Land business unit.
Third quarter of 2017
In August, Patria signed a contract for a series of CANDL (Compact Airborne Networking Data Link) terminals, HPA high power amplifiers and related services. Patria will deliver the CANDL terminals to Airbus Defence & Space in Germany.
Patria’s employee cooperation negotiations concerning personnel in Finland started in August due to productional and financial reasons and due to changes in operational and management model. The negotiations resulted in reduction of 101 positions. The reorganization supports Patria’s strategy by focusing the role of parent company on strategic steering, scaling down the supply of group level support services and increasing the productivity in selected business units. The target is a company focused on providing its aerospace and military customers with equipment availability and continuous performance development even more cost-efficiently. In September, Patria started employee cooperation negotiations in Sweden due to financial reasons and due to changes in company's organization. The negotiations cover all functions and personnel groups and they may result in reductions of 20 positions at most.
In September Patria won the competition and signed a contract with the Norwegian Defense Logistics Organization for the maintenance of the Norwegian Armed Forces’ Bell 412 helicopters. The contract is for four years and it includes an option for additional three years. The estimated value of the contract is over seven million euros.
In September, Patria attended DSEI event in London and showcased the Patria AMVXP armoured wheeled vehicle integrated with Kongsberg PROTECTOR Dual RWS. Patria also highlighted its know-how in simulation technology by demonstrating Patria AMV Part Task Trainer networked with Patria Nemo Training Simulator.
Highlights after the 3rd quarter financial period
Patria and the Finnish Defence Forces signed a Letter of Intent and Pre-design Activities Contract concerning the Squadron 2000 Mid-Life Upgrade (MLU). The value of this contract is approximately one million euros.
Patria acquired on 2 October 60 % of shares of the largest Estonian military repair, engineering and maintenance company Milrem LCM OÜ from Mootor Grupp AS. The acquisition is an important step in realizing Patria’s international service business growth strategy.
Outlook for the rest of the year
The outlook for the financial year is reasonably satisfactory, though reflecting the moderate result from the first three quarters.
For more information, please contact:
Ville Jaakonsalo, Chief Financial Officer, tel. +358 500 881 070, [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%).
