Alstom achieved a good level of orders, while, as expected, its operational performance was impacted by low sales

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Between 1st April and 30th September 2011, Alstom booked a sound level of orders at 10.2 billion, up 45% compared to the first half of last year, confirming the recovery achieved in the second part of 2010/11. Over the same period, sales amounted to 9.4 billion, down 10%, reflecting the low level of orders taken during the last economic downturn. Impacted by this lower volume, income from operations decreased to 627 million, corresponding to a margin of 6.7%. The net result stood at 363 million, whilst the free cash flow was negative at (914) million, due to the low sales and some non-recurring events.

The commercial rebound was confirmed during this first half with orders exceeding 10 billion and a book-to-bill above 1 for the fourth consecutive quarter. As announced, the low turnover of this period, reflecting the trough in orders taken during the 2009 crisis, negatively impacted both profitability and cash. The second half of the year should be characterised by an improved volume of sales, a higher operating margin, as well as a positive free cash flow. Based on this analysis, we are able to confirm our operating margin forecast of 7-8% for the fiscal year 2011/12. In terms of commercial activity, mature markets remained slow, impacted by the lack of visibility in the current economic environment, whilst the emerging markets continued to benefit from the favourable trends already noticed; our recent successes in these regions give us confidence to maintain a sustained level of orders in our four Sectors, said Patrick Kron, Alstoms Chairman & Chief Executive Officer.

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