With Bouygues taking a stake in ALSTOM, ALSTOM is planning
broad cooperation with Bouygues at the commercial and operational
levels
With Bouygues taking a stake in ALSTOM, ALSTOM is planning
broad cooperation with Bouygues at the commercial and operational
levels
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At the commercial level, the two companies are planning
cooperation of their sales networks to maximise their strengths
on the markets and develop together integrated projects as
opportunities arise. Bouygues and ALSTOM can provide a joint
response to market demands by offering solutions that combine
Bouygues civil engineering with ALSTOMs equipment.
It has been agreed that the cooperation between Bouygues and
ALSTOM should not be exclusive: in the interest of their
customers, the two companies will continue to work with the most
suitable partners and suppliers for each project.
Exchanges at the operational level would involve the
improvement of project execution by sharing best practices in
organisation and project management, setting up joint training
programmes for project directors and optimising costs on common
projects.
Bouygues also intends to take a 50% equity share in ALSTOM's
hydro power equipment business; the corresponding terms are under
discussion. This operation would allow ALSTOM to fulfill the
commitment made to the European Commission to set up a joint
venture in this sector. ALSTOM is the world's number one hydro
power equipment supplier and service provider.
The necessary procedures have been or will be implemented to
inform and/or consult the various bodies representing ALSTOM
personnel about the project.
ALSTOM had previously confirmed to the French State and
Bouygues that the results for fiscal year 2005/2006 which will be
published on 17 May would be in line with the objectives set,
i.e. increase in orders of more than 5% on a comparable basis,
increase in sales of more than 7% on a comparable basis, an
operating margin of more than 5%, positive free cash flow and net
income, after taking into account the disposal of the Marine
activity, of more than 150 million. ALSTOM also confirmed
its objective of achieving an operating margin between 6% and 7%
in March 2008 and indicated it should exceed these levels in
March 2009.
Patrick Kron, Chairman and CEO of ALSTOM, stressed that
"Bouygues investment in ALSTOM fully meets my objective of
associating a reference shareholder with a long term view, which
will contribute to the stability of our capital structure.
Bouygues is a great company that shares our conviction that our
energy and transport markets have a very bright outlook for the
future and considers ALSTOM as ideally positioned to fully
benefit from this growth. The envisaged cooperation with Bouygues
will strongly support our strategy focused on improvement of
performance and profitable growth."
Press information:
Patrick Bessy
(33) (0) 1 41 49 3762
press@chq.alstom.com
Investor Relations:
Emmanuelle Châtelain
(33) (0) 1 41 49 3738
investor.relations@chq.alstom.com