Alstoms orders and sales for the first nine months of 2016/17
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- Order intake of 7.2 billion, up 16%
- Organic sales growth at 5%
- 2020 objectives confirmed
Over the third quarter 2016/17 (from 1 October to 31 December 2016) and after a very strong commercial performance in the second quarter, Alstom booked 1.0 billion of orders. The Groups sales increased to 1.7 billion, up 3% (2% organically) compared to 1.6 billion over the third quarter 2015/16.
For the first nine months of 2016/17 (from 1 April to 31 December 2016), Alstoms order intake reached 7.2 billion, up 16% compared to 6.3 billion over the same period last year. The Groups sales amounted to 5.2 billion, up 6% (5% organically) compared to the first nine months of 2015/16. The book-to-bill remained strong at 1.4.
On 31 December 2016, the backlog reached a new record high at 33.8 billion, providing strong visibility on future sales.
Alstom achieved a solid commercial performance over the first nine months of 2016/17. We have recently been awarded for the supply of 15 regional trains in Senegal, our first order in Western Africa. Last week the Alstom-Bombardier consortium was selected to renew suburban trains in France. These two contracts should be booked in the next quarter. Organic sales growth at 5% was perfectly in line with our 2020 objectives, said Henri Poupart-Lafarge, Alstoms Chairman & Chief Executive Officer.
Detailed review
During the third quarter of 2016/17, Alstom booked 1,023 million of orders including notably signalling and infrastructure for Cairo Metro line 3, regional trains for Southern Germany, new generation of metros to Greater Lyon in France and maintenance to freight locomotives in Mexico.
Sales increased to 1,655 million in the third quarter 2016/17, mainly fuelled by deliveries of suburban and regional trains in Europe, progress of Riyadh metro system in Saudi Arabia, PRASA project in South Africa and maintenance contract in the United Kingdom.
Main events of the third quarter 2016/17
In October 2016, the French Government and Alstom presented a plan to maintain the railway and industrial activities on Belfort site.
Beginning December 2016, Alstoms South African JV Gibela successfully handed over to PRASA the first XTrapolis Mega train. The Gibela manufacturing plant where 580 trains will be produced is currently under construction. It is expected to be completed by the end of 2017.
On 21 December 2016, Alstom signed a purchase agreement for the acquisition of Nomad Digital, worlds leading provider of connectivity solutions to the railway industry.
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.
The half-year financial report, as approved by the Board of Directors, in its meeting held on 8 November 2016, can be found on Alstoms website at www.alstom.com. The accounts have been audited and certified.