LEVALLOIS-PERRET (dpa-AFX) - French speed-train maker Alstom SA (AOMFF.PK, ALS.L) reported that its sales for third quarter 2016/17 increased by 3%, 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. Quarterly Organic sales growth were 2%. It confirmed 2020 objectives.
'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, Alstom's Chairman & Chief Executive Officer.
The Group's sales for the third-quarter increased 2.60 percent to 1.655 billion euros from 1.613 billion euros in the previous year. During the third quarter of 2016/17, Alstom booked 1.023 billion euros 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. The company booked 2.358 billion euros of orders in the prior year.
For the first nine months of 2016/17 Alstom's order intake reached 7.2 billion euros, up 16% compared to 6.3 billion euros over the same period last year. The Group's sales amounted to 5.2 billion euros, up 6% or 5% growth 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 euros, providing strong visibility on future sales.
Beginning December 2016, Alstom's South African JV Gibela successfully handed over to PRASA the first X'Trapolis 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.
Alstom continues to project adjusted EBIT margin to reach around 7% by 2020 driven by volume, portfolio mix and results of operational excellence actions. By 2020, sales are still expected to grow organically by 5% per year. It still expects about 100% conversion from net income into free cash flow by 2020.
Copyright RTT News/dpa-AFX