First quarter 2016/17: Alstom continues its organic growth
Over the first quarter 2016/17 (from 1 April to 30 June 2016), Alstom booked 0.9 billion of orders, compared to 2 billion over the same period last year. Sales, at 1.7 billion, were up 7% organically over the first quarter 2016/17.
At 29.7 billion on 30 June 2016, the backlog represented over 4 years of sales.
Alstom booked only small contracts during the first quarter 2016/17. The low level of orders does not reflect the commercial activity that has been very strong and should translate into orders in coming quarters. For example, the projects for the extension of the Dubai metro or for regional trains for Italy recently announced have not yet been booked. Sales grew by 7% organically compared to the first quarter 2015/16 thanks to achievement of several project milestones., said Henri Poupart-Lafarge, Alstoms Chairman & Chief Executive Officer.
During the first quarter of 2016/17, Alstom recorded an exceptionally low level of orders of 889 million, composed only of small contracts and with no order above 100 million. Last year, Alstom booked 1,955 million of orders for the first quarter.
Sales, at 1,747 million, were up 9% (7% organically) in the first quarter 2016/17 compared to the same period last year. Sales deliveries were mainly driven by regional, high-speed and suburban trains in France, regional trains in Italy, Germany and Sweden, progressive ramp-up of the PRASA project in South Africa, maintenance of high speed trains in the UK as well as a signalling project in Canada.
In line with the first pillar of its 2020 Strategy, Alstom reinforced its local network with several acquisitions and partnerships in April 2016. The Group completed the acquisition of CTLE shares (Commuter Transport & Locomotive Engineering), reinforcing its local presence in South Africa. Alstom also signed a frame agreement to extend Citals activities and locally produce Coradia regional and intercity trains for Algeria. Lastly, Alstom took control of Cabliance in Morocco by acquiring Nexans stake.
Objectives for 2020 confirmed
By 2020 sales should grow organically by 5% per year.
Adjusted EBIT margin should reach around 7% by 2020 driven by volume, portfolio mix and results of operational excellence actions.
By 2020, Alstom expects c. 100% conversion from net income into free cash flow.
This press release contains forward-looking statements which are based on current plans and forecasts of Alstoms management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause actual results to differ from the plans, objectives and expectations expressed in such forward-looking statements. These 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.
Full version of the Press release (with appendix) below in pdf.