Alstom has booked EUR 1.6 billion of orders over the first quarter of fiscal year 2019/20, compared to EUR 2.6 billion over the same period last year. The largest rolling stock orders recorded in Europe, notably in Germany with a major contract of Coradia iLint trains for the Hessen region and for the Hamburg metro, in France with Coradia Polyvalent trains, and in both Netherlands and Italy with additional Coradia Stream trains. The group was also awarded signalling contracts in Europe and Asia-Pacific.
Company’s sales increased to EUR 2.1 billion, up 2% compared to EUR 2 billion from 1 April to 30 June 2019. The company recorded a decrease in systems balanced by a notable growth in signalling and rolling stock. Sales were mainly fuelled by system projects in the Middle East, rolling stock contracts in Europe mainly with the Coradia product family delivering sales in France, Germany, Italy and the Netherlands and the Amtrak contract in the US.
Alstom says that at EUR 40 billion on 30 June 2019, the current backlog provides strong visibility on future sales.
“During this first quarter, we won several key orders related with our latest innovations: the ebus Aptis and the Coradia iLint, the world’s first hydrogen train. We also successfully delivered two important projects: the first Coradia Stream “Pop” train in Italy and the Sydney North West Metro. This demonstrates the strengths of Alstom in terms of smart and green innovation as well as efficient delivery, two pillars of our newly launched Alstom in Motion Strategic plan.” said Henri Poupart-Lafarge, Alstom CEO.
The 2019/20 fiscal year will be a year of stabilisation of growth after a 2018/19 fiscal year with an exceptional sales and profitability growth. For 2019/20 fiscal year, the business cycle with the finalisation of major systems contracts and the evolution of large Rolling stock projects will lead to a sales and margin growth lower than the average objectives set in the context of AiM, and to a working capital evolution impacting the generation of free cash flow.
Up to march 2023, Alstom targets an average annual growth rate of sales 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%.