Orders and Sales for the First Quarter Ended 30 June
2001

Orders received up 36% as reported and up 17% on a
comparable basis

Sales rose 19% as reported and 5% on a comparable basis

Unaudited Reported Figures

 

 

Commenting on the First Quarter Orders and Sales, announced
this morning, Pierre Bilger, Chairman and Chief Executive
Officer of ALSTOM stated:

'For the first quarter, we continue to see sound order
growth. In Power, orders were mainly focused on steam turbines,
boiler products, services and industrial-size gas turbines
activities [and we expect to see progress in our gas turbines
orders in future quarters]. In Transport, demand continued to
be strong which included several large long-term service
contracts. T&D has had good order intake. Overall, our
order book of 39.5 billion remains at a record level,
which will be progressively reflected in sales over the years
to come. '

 

Orders and Sales

During the first quarter of fiscal year 2002, ALSTOM
received orders for a total amount of 6.2 billion versus
4.6 billion for the first quarter of fiscal year
2001.

On a comparable basis and versus a relatively low level last
year, the Company recorded strong organic growth as orders
received increased by 17%. Transport, due principally to major
lLong-term operation and maintenance contracts, in Transport
and our Power activities contributed essentially to this growth
were the main contributors to this growth.

Sales recorded in the first quarter of fiscal year 2002
amounted to 6.0 billion versus 5.1 billion
recorded during the same period last year.

On a comparable basis, sales rose by 5%. This is was mainly
due to the increase in sales recorded by Power and Transport
offset by a decrease in Marine, due to the phasing of
cruise-ship delivery schedules.

Order backlog was approximately 39.5 billion
(including approximately 6.4 billion of long-term
operation and maintenance contracts)

Geographic Breakdown

 

Orders received increased in Europe and the Americas and
decreased in Africa Middle East and Asia- Pacific.

The European Union accounted for 43% of orders received in
the first quarter of fiscal year 2002 versus 38% during the
same period last year and North America rose due to Power to
over 29%. Asia-Pacific dropped to 13% of orders received.
Europe remains an important market for most sectors but is
particularly strong for Transport. Growth in Central and South
America is essentially due to Power and T&D. Orders in Asia
remain strong in Transport and T&D but are modest for
Power.

Currency Effect

Orders and sales have been impacted during the first quarter
by the translation effect between Euro and non-Euro currencies.
Overall this the impact is amounts to approximately +2% for
orders received and for sales.

 

Comments by Sector

Power

Orders: Orders received during the first quarter of fiscal
year 2002 in Power grew 53% on an as reported basis to
2.6 billion and 15% on a comparable basis versus the first
quarter of fiscal year 2001. Orders growth was high due to a
relatively low base in the corresponding quarter in fiscal year
2001.

Demand was strong for steam turbines, boiler products,
services and industrial-size gas turbines, particularly in the
US. This more than offset a drop in turnkey steam, hydro and as
expected, in large gas turbines.

Service orders received continued to progress from a high
base in the previous year. Demand was particularly strong for
our Heat Recovery Steam Generators (HRSG) and steam products
turbine generators associated with combined cycle gas turbines.
A notable contract in this activity was the Panda Energy (US)
contract for 20 HRSGs. In addition, we received a large order
for a new coal fired power plant based on our Circulating
Fluidised Bed (CFB) technology of 260 million. Hydro
orders received were lower than the high level last year.

Gas orders received were at a low level, as expected, while
the Company continued the re-orientation of sales towards
mid-sized gas turbines. In the past few weeks, we have been
selected for several such contracts in South America, the
Middle East and Asia and we expect to book these projects with
a total value exceeding 1 billion in the coming months,
as the respective project financing is finalised.

Gas orders received were down as expected to the withholding
from the market of our large gas turbines, GT24/26. The Company
continued it efforts to re-orient sales towards its mid-sized
gas turbines [and we are pleased to announce that contracts for
three 13E2 gas turbines and ten 11N2 gas turbines have been
secured in South America and Asia. These will be booked in the
second quarter of this financial year with a value in excess of
1 billion Further opportunities are at an advanced stage
of negotiations.]

Industrial gas turbines orders received grew rapidly as a
result of the full commercial launch of the new GTX100 and
Cyclone turbines as well as the established Typhoon turbine.
Highlights of contracts were two GTX100 (43 MW) for the City of
Vernon (US) and five Typhoons (5 MW) and one Tempest (8MW) for
Ambev (Brazil).

Sales: Sales grew by 46% on an as reported basis, and 17% on
a comparable basis. Service, gas and boiler product sales rose
due to previous orders received. Growth was particularly strong
in the US.

 

Transmission and Distribution

Orders: Orders received rose by 12% on an as reported basis
and 8% on a comparable basis versus the corresponding quarter
in fiscal year 2001. Growth on a comparable basis was due to
transmission products while the other products and services
remained essentially flat. The pull-through effect of the Power
sector also contributed to this increase. On a geographical
basis, order growth was in the Americas and Asia.

Sales: Sales rose by 3% on an as reported basis and were
flat on a comparable basis. The slight rise in sales on an as
reported basis was due mainly to acquisitions, Energy
Management Markets and distribution products.

 

Transport

Orders: Transport continued to benefit from strong market
conditions throughout the world. Orders received rose
significantly by 59% on an as reported basis to 1.8
billion, and 48% on a comparable basis. The strong growth was
due to new orders for service, systems, overhauls and new
rolling stock continued in the quarter.

The highlights for the order growth were two long-term
service contracts for the West Coast Main line in the UK and
for the RENFE in Spain, the systems business in Singapore,
rolling stock orders for the SNCF, overhaul orders for the
Chicago CTA (US) and propulsion sets for New York Citys
NYCTA (US).

Sales: Sales rose 15% on a as reported basis to 1.0
billion and 4% on a comparable basis versus the first quarter
of fiscal year 2001. The rise in sales on an as reported basis
was due essentially to acquisitions in Italy and the
Netherlands.

 

Marine

Orders: As expected, no major orders were received this
quarter. Marine order backlog is full until 2004.

Sales: Sales dropped due to the delivery schedule. Marine
delivered the European Vision to Festival in the quarter and
continued work on several other vessels.

Power Conversion

Orders: The growth versus the corresponding period in fiscal
year 2001 in orders received of 19% as reported to 0.2
billion was due to orders in the Marine and Offshore
activity.

Sales: Sales remained flat compared to the first quarter of
fiscal year 2001.

 

Contracting

Orders: Following a high level of orders in the fourth
quarter of fiscal year 2001, orders received were lower by 11%
on a comparable basis in the first quarter of fiscal year
versus last year.

Sales: Sales grew by 6% on an as reported basis and 2% on a
comparable basis versus the prior years first
quarter.

The disposal of Contracting is expected to be completed in
July.

 

Explanatory Notes

This document explains the assumptions used to determine
comparable figures between June 2000 and June 2001.

1. Analysis of orders received and sales on a comparable
basis

The following adjustments have been made to evaluate orders
received and sales on a comparable basis

Orders received and sales contributed by Power are
consolidated 100% from 1 April 2000 (see note 1.1),

Orders received and sales contributed by activities acquired
since 30 June 2000 have been excluded in the first quarter
fiscal year 2002 figures (see note 1.2).

1.1. Power Figures

For the first quarter fiscal year 2001, the as reported
figures reflect the 50% consolidation of ABB ALSTOM POWER from
1 April 2000 10 May 2000 and the 100% consolidation of
ALSTOM Power from 11 May 2000 30 June 2001.

Comparable figures have been calculated to illustrate the
estimated effects of the integration of 100% of Power as if it
had occurred on 1 April 2000.

1.2. Acquisitions

The table below sets out orders received and sales
contributed to Transmission and Distribution, Transport and
Contracting by activities acquired since 30 June 2000. Notable
acquisitions were Fiat Ferroviaria and Traxis for Transport;
Coemsa in Brazil, Norweb Contracting and Scottish Power for
T&D.

 

1.3. Comparable basis figures

 

Orders received - Geographic breakdown excluding
Contracting

 

Contacts :

Press enquiries

G. Tourvieille

(Tel. +33 1 47 55 23 15)

gilles.tourvieille@chq.alstom.com

Investor relations

Rob Shaw (Tel. +33 1 47 55 25 78)

investor.relations@chq.alstom.com

Internet :
http://www.wcm.alstom.com

*

* *

 

Forward-Looking Statements

This press release contains, and other written or oral
reports and communications of ALSTOM may from time to time
contain, forward-looking statements, within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Such statements appear,
without limitation, in the section entitled Breakdown by
Sector. Examples of such forward-looking statements include,
but are not limited to (i) projections or expectations of
sales, income, operating margins, dividends or other financial
items or ratios, (ii) statements of plans, objectives or goals
of the Company or its management, (iii) statements of future
product or economic performance and (iv) statements of
assumptions underlying such statements. Words such as
'believes,' 'anticipates,' 'expects,' 'intends,' 'aims,'
'plans' and 'will' and similar expressions are intended to
identify forward-looking statements but are not the exclusive
means of identifying such statements.

By their very nature, forward-looking statements involve
inherent risks and uncertainties that the forecasts,
projections and other forward-looking statements will not be
achieved. Such statements are based on managements
current plans and expectations and are subject to a number of
important factors that could cause actual results to differ
materially from the plans, objectives and expectations
expressed in such forward-looking statements. These factors
include: (i) the inherent difficulty of forecasting future
market conditions, interest rates and exchange rates; (ii) the
effects of, and changes in, laws, regulations, governmental
policy, taxation or accounting standards or practices; (iii)
the effects of competition in the product markets and
geographic areas in which ALSTOM operates; (iv) the ability to
increase market share, control costs and enhance cash
generation while maintaining high quality products and
services; (v) the timely development of new products and
services; (vi) the inherent technical complexity of many of the
Companys products and the ability to resolve effectively
and at reasonable cost technical problems that inevitably
arise; (vii) risks inherent in large contracts that comprise a
substantial portion of the Companys business; (viii) the
effects of acquisitions and disposals; (ix) the ability to
invest in successfully, and compete at the leading edge of,
technology developments across all of the Companys
Sectors; (x) the availability of adequate cash flow to achieve
managements objectives or goals; and (xi) ALSTOMs
success at adjusting to and managing the risks of the
foregoing. ALSTOM cautions that the foregoing list of important
factors is not exhaustive; when relying on forward-looking
statements to make decisions with respect to the Company,
investors and others should carefully consider the foregoing
factors and other uncertainties and events, as well as other
factors described in other documents ALSTOM files from time to
time with the Securities and Exchange Commission, including
reports on Form 6-K. Such forward-looking statements speak only
as of the date on which they are made, and ALSTOM undertakes no
obligation to update or revise any of them, whether as a result
of new information, future events or otherwise.