While Alstom’s sales rose 8% in the first quarter of its staggered 2022/23 fiscal year to just €4bn, order intake stagnated, down 13% at €5.6bn. Even so, the order book remains at a record level, 83.4 billion euros.
Indeed, the international context and inflation are beginning to weigh on activity and prospects. “The current increasingly complex economic and political context creates uncertainties about operating activities and Alstom is no exception. In particular, inflation will weigh somewhat on profitability in fiscal year 2022/23 and shortages of electronic components could create pressure on deliveries,” the group warned in a press release.
Cost reduction
Consequently, the group explains that it has “implemented strong risk management and cost reduction actions to overcome this phase of uncertainty.”
In terms of activity, Europe supplied 70% of the French group’s orders in the first quarter, highlighting the large markets for regional trains in Germany and fast intercity trains in Sweden. In Asia-Pacific, the quarter was marked by a major contract for the supply of trams in Melbourne, Australia.
The group still expects “sustained” sales growth in 2022/23 and an improvement in its operating margin.
confirmed goals
In the longer term, Alstom confirms its objectives for 2025, with a five point increase in its market share compared to 2021 – the date of the acquisition of Bombardier Transport, whose integration is ongoing -, an increase in sales of at least 5% per year and an operating margin between 8 and 10% in 2024/25 (vs. 5% last year).
Management is also committed to “delivering a sustained return to its shareholders”, with a dividend distribution rate of between 25 and 35% of adjusted net income (excluding exceptional items).
“Despite a more complex global environment marked in particular by inflation and shortages of electronic components, the Group continues to make progress in implementing its Alstom in Motion strategic plan, demonstrating the resilience of its business model,” said Henri Poupart. -Lafarge, President and CEO of Alstom.
Source: BFM TV
