Over the third quarter 2019/20, Alstom booked EUR 3.6 billion of orders, compared to EUR 3.4 billion over the same period last fiscal year, with order intake reaching EUR 8.2 billion.
“Alstom’s order intake was particularly dynamic this quarter, benefiting from a strong momentum in Europe and Asia Pacific with a major contract for Perth’s rail network, as well as significant orders in Signalling and Services in line with our Alstom in Motion (AiM) strategy,” said Henri Poupart-Lafarge, the CEO of Alstom.
The company’s sales increased at EUR 2.1 billion compared to EUR 2 billion over the third quarter 2018/19, reaching EUR 6.2 billion, a 3% increase. During the first nine months of 2018/19, rolling stock sales grew by 11% with the acceleration of major projects this quarter. Services show a slight decrease at 2%. Systems show a foreseen decline, by 22%, due notably to a fully traded contract for Panama Metro and contracts nearing completion in Middle East. Signalling sales increased strongly by 16%, in coherence with company’s AiM strategy, with contracts executed mainly in Americas, Asia Pacific and Europe.
For Alstom’s orders, Europe has the largest impact, with notably a EUR 755 million contract to refurbish and maintain Avanti West Coast Pendolinos in the United Kingdom and the renewal and automation of Marseille metro. It also includes 44 new generation metro trains for Île-de-France Mobilités and RATP in consortium with Bombardier within a major frame contract for a total of up to 410 trains. Alstom also achieved a strong order intake in Asia Pacific at EUR 1.27 billion with a combined EUR 800 million contract for rolling stock and maintenance for Perth’s rail network in Australia, as well as driverless trains and digital signalling system for Sydney Metro extension.
Orders in signalling and services were particularly positive with EUR 593 million and EUR 1.26 billion respectively booked during the quarter.
On 31 December 2019, the backlog reached a new historical record of EUR 43 billion and provides strong visibility on future sales, Alstom says. Up to March 2023, Alstom targets an average sales annual growth rate of around 5% over the period 2019/20 – 2022/23, an adjusted EBIT margin to reach around 9% in 2022/23, a conversion from net income to free cash flow above 80% by 2022/23 and a dividend policy with a pay-out ratio between 25% and 35%.
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