Al­stom posts higher sales and prof­its, shares surge

The Gulf Today - Business - - INTERNATIONAL -

PARIS: French man­u­fac­tur­ing group Al­stom, which is merg­ing its rail op­er­a­tions with Ger­many’s Siemens, re­ported higher an­nual sales and prof­its on Wed­nes­day 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 per cent from the pre­vi­ous year to 7.951 bil­lion eu­ros ($9.4 bil­lion), while ad­justed earn­ings be­fore in­ter­est and tax (EBIT) climbed 22 per cent to 514 mil­lion eu­ros.

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

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

Al­stom said it ex­pected sales of around 8 bil­lion eu­ros for next year, and an EBIT mar­gin of up to 7 per cent.

“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 Poupart-la­farge 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.

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