Patria Group Interim Report for 1 January - 31 March 2017
Patria Group’s result for the first quarter of the year was at the estimated level. Net sales totalled EUR 106.1 million (EUR 101.5 million in 2016). Operating profit was EUR 4.9 million (EUR 15.7 million). Equity ratio was 58.6% (53.2%) and net gearing 4.5% (9.2%). The decrease in operating profit is mainly due to the delayed international projects in Land Business Unit.
The first quarter 2017
In February Patria purchased five training aircraft and two flight training simulators from the Austrian manufacturer Diamond Aircraft Industries GmbH. The purchase consists of four single engine DA40 NG aircraft and one DA42-VI multi-engine training aircraft and two Flight Navigation and Procedures Trainers (FNPT II) for DA42-VI aircraft.
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 licence.
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.
Patria launched its new strategy for growth, investing in and directing its development efforts towards international lifecycle support services. Lassi Matikainen, member of Patria’s Board of Management, was appointed to lead the new International Support Partnerships unit, with special focus on international growth of helicopter maintenance and expansion of civil flight training.
Patria and Schiebel have been working together to integrate Patria’s sophisticated Compact Airborne Networking Data Link (CANDL) communication network onto the CAMCOPTER® S-100 Unmanned Air System (UAS). The two European companies’ joint effort is the first step of an ongoing program of work examining how the CAMCOPTER® S-100 can be deployed to directly support manned helicopter operations.
Highlights after the reviewed period
Norwegian Defence Logistics Organisation (NDLO) has selected Patria to supply on-aircraft maintenance for the Norwegian NH90 helicopters. The scope of the contract covers phase and calendar inspections, associated repairs and maintenance for the Norwegian NH90 NFH 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.
Patria started in April employee co-operation negotiations in its Aerostructures Business Unit due to the productional and financial reasons. Additionally, Patria considers to re-organize work due to the changes in the operational model. Negotiations concern all functions and personnel groups and may result in temporary lay-offs or reductions of 50 persons.
M.Sc. (Eng.) Sami Pitkänen, 46, was appointed as the new President of Millog, which is Patria’s subsidiary (61,8 %). He will start in the position on 1 August 2017.
Patria supports the national Sleep Easy project, which is organized by the Finnish organization Maanpuolustuksen Tuki and it intends to increase general awareness of overall security and motivate citizens, especially the youth to engage in voluntary defence and security efforts. This national non-profit project will bring together all the principal actors in the field of security: the authorities, non-governmental organisations, companies and citizens. The project has been approved for inclusion in Finland’s Centennial Year programme with the status of an extensive cooperation project.
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, are launched on international markets. Internal action will be taken to increase the cost-effectiveness and flexibility of operations.
For more information, please contact:
Ville Jaakonsalo, Chief Financial Officer, tel. +358 500 881 070, email@example.com
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%).