From 1 April to 30 June 2014, Alstom booked €8.2 billion orders, twice the level of the first quarter last year. This record performance derives essentially from a contract with PRASA in South Africa booked in Transport for around €4 billion, as well as a good flow of orders in Renewable Power and Grid.
Sales were organically down by 1% to €4.3 billion, affected by the lower level of order intake booked in the recent quarters in some businesses. Foreign exchange had a 3% negative impact on sales.
Over the first three months of the fiscal year, orders in Thermal Power, at €1.5 billion, included a sustained flow of service contracts. Both Grid and Renewable Power booked a robust volume of orders at respectively €1.2 billion and €0.7 billion.
At €4.8 billion, Transport order intake reached a record level thanks to the booking of a jumbo rail contract for suburban trains in South Africa as well as numerous small to medium-sized contracts.
Sales decreased in the first quarter 2014/15 in Thermal Power and in Renewable Power (both -10% on a like-for-like basis) and in Grid (-5% on a like-for-like basis). Transport sales increased by a strong 17% organically, reflecting the progressive execution of the backlog and a low basis of comparison in the first quarter 2013/14.
The total backlog reached €56 billion on 30 June 2014, representing 33 months of sales.
” First quarter’s orders made for a strong start of the year, thanks to Transport which maintained a good commercial dynamic. In the Energy businesses, Thermal Power had no large orders in new build but benefited from a good commercial activity in Service. Renewable Power and Grid orders had a solid start compared to last year. Transport sales increased sharply, driven by the execution of its record backlog, representing nearly 4.5 years of sales at the end of June. We expect Transport to achieve a good commercial performance this year with sales to grow organically at a sustained pace. Concerning General Electric’s offer for our Energy businesses, following the recommendation by the Board, we immediately initiated the first implementation stages, notably work councils’ consultation – information, the finalisation of the JVs agreement and signalling acquisition, and launch of merger and other regulatory authorisation processes. We expect to call for a shareholders’ meeting before the end of 2014 for a decision on the deal”, said Patrick Kron, Chairman & Chief Executive Officer of Alstom.
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