LEVALLOIS-PERRET (dpa-AFX) - Alstom SA (AOMFF.PK, ALS.L) reported that its group sales for the first quarter of the 2020/21 fiscal year were 1.51 billion euros, down 27% or 25% on an organic basis from the prior year. The decrease was mainly caused by the impact of the Covid-19 crisis, in particular on Rolling Stock due to the slowdown of sales recognition during the containment period, to a lesser extent on Services due to train traffic reduction and Signalling due to a slowdown in installation.
Alstom recorded 1.651 billion euros of orders compared to 1.62 billion euros for the first quarter of 2019/20. This sustained order intake, despite the crisis, was mainly fueled by a large Rolling stock and Services order in AMECA and a metro system order in Taipei, Taiwan.
The company confirmed its outlook. The Covid-19 crisis is likely to affect negatively the financial performance of the 2020/21 fiscal year, including order intake, net income, free cash flow and sales, though it is not possible today to assess precisely its impact.
After the current crisis, the Group expects a fast recovery of the rail market, sustained by strong fundamentals and increasing demand for sustainable mobility.
The objective of a 5% average annual growth rate over the period from 2019/20 to 2022/23 should be slightly impacted by the temporary slowdown of tender activity, yet the 2022/23 objectives of 9% aEBIT margin and of a conversion from net income to free cash flow above 80% are confirmed.
Copyright RTT News/dpa-AFX