Alstom posts higher sales and profits, shares surge

PARIS: French manufacturing group Alstom, which is merging its rail operations with Germany’s Siemens, reported higher annual sales and profits yesterday that sent its shares surging higher.

Alstom makes railway infrastructure products as well as other equipment and services for the transport sector.

Last year, Siemens and Alstom agreed to merge their rail operations, creating a European champion to challenge the advance of China’s state-owned CRRC.

Alstom’s sales for its 2017/2018 financial year rose by 9% from the previous year to 7.951bil (US$9.4bil), while adjusted earnings before interest and tax (EBIT) climbed 22% to 514mil.

Alstom also proposed a dividend of 0.35, up 40% from last year, while its EBIT margin rose to 6.5% from 5.8%.

Alstom shares were up 5% in early session trading, touching their highest level since July 2011.

Alstom said it expected sales of around 8bil for next year, and an EBIT margin of up to 7%. “Alstom continued to leverage the growing globalisation of the mobility market and is now in excellent position to join forces with Siemens Mobility,” said Alstom chairman and chief executive Henri PoupartLafarge in a statement.

Poupart-Lafarge added that Alstom’s pipeline of orders was up from last year’s levels, and that the company hoped to return towards winning major contracts in the Middle East given a rebound in oil prices that boost the region’s economies. — Reuters