Excellent results for Alstom in the first half 2018/19

14 November 2018 – Between 1 April 2018 and 30 September 2018, Alstom booked €7.1 billion of orders leading to a new record-breaking backlog of €38.1 billion. Sales reached €4.0 billion. The book-to-bill was strong at 1.8. The adjusted EBIT increased to €285 million leading to an adjusted EBIT margin of 7.1%. Net income (Group share) was exceptionally high at €563 million. During the first half of fiscal year 2018/19, free cash flow amounted to €172 million.

 Key figures

 “Alstom achieved excellent results in this first half with breakthrough commercial successes, including new generation of very high – speed trains in France and metro system project in Canada. The new record – breaking backlog provides strong visibility on future sales and our outstanding operational performance reflects the solid projects execution . In the meantime, we continue to progress on the combination with Siemens Mobility to create substantial value for the mobility sector, our customers, every day users of our transport sol utions as well as for our employees and our s hareholders .” said Henri Poupart-Lafarge, Alstom Chairman and Chief Executive Officer.

 Success of the 2020 strategy 

 Alstom 2020 strategy is based on the five following pillars:

  1. Customer-focused organisation

The Group booked €7,129 million orders in the first half of fiscal year 2018/19. This compares to €3,170 million over the same period last year. 

Alstom was awarded projects in all regions, including an order for 100 next-generation very high speed trains in France, a driverless light metro system for Montreal, Pendolino trains and maintenance in Italy, a major rolling stock contract for Mumbai, an integrated metro system for Taipei, additional Citadis Dualis tram-trains in France, a long-term rolling stock and signalling maintenance contract for Sydney metro, a national on-board train control system in Norway, electric locomotives in Morocco and Citadis trams for Frankfurt. 

The backlog reached a new record high and amounted to €38,113 million on 30 September 2018, providing strong visibility on future sales.

  1. Complete range of solutions

In the first half of fiscal year 2018/19, Alstom’s total sales reached €4,010 million, up 20% (23% organically). The book-to-bill was strong at 1.8.

Signalling, systems and services represented 57% of sales in the first half of 2018/19. Systems sales reached €888 million with a strong ramp-up on Dubai metro and Lusail tram systems projects and progress on Riyadh metro system. Services sales increased to €749 million notably thanks to the increasing contribution of United Kingdom and Italy contracts. Signalling sales increased at €637 million with the start of new projects in France and in Australia. Rolling stock sales reached €1,736 million with deliveries of regional and highspeed trains in Europe and the on-going execution of the PRASA project in South Africa. 

  1. Value creation through innovation

Alstom sustained its level of research and development (gross costs) at €147 million, i.e. 3.7% of sales, in first half of 2018/19. Main programmes included the renewal of rolling stock ranges, smart mobility and predictive maintenance. 

In September 2018, Alstom’s hydrogen trains Coradia iLint entered passenger service in Lower Saxony, a world premiere. Alstom also launched StationOne, the first online marketplace dedicated to the railway sector.

  1. Operational and environmental excellence

Alstom delivered an adjusted EBIT of €285 million corresponding to 7.1% margin in first half 2018/19, compared to €180 million corresponding 5.4% margin the previous year. This improvement was driven by a significant volume increase and on-going initiatives for operational excellence, while portfolio mix remained stable. Net Income (Group share) reached to €563 million, including an exceptional net income from discontinued operations of €245 million.

In September 2018, Alstom has been included in the Dow Jones Sustainability Indices (DJSI), World and Europe for the eighth consecutive year, attesting to its leading position in sustainable business practices. 

  1. Diverse and entrepreneurial people

To reflect Alstom’s passenger base, the company has the ambition to increase diversity. Alstom’s employees around the world all share the same culture, underpinned by strong integrity and ethics values. 

In September 2018, Alstom distributed 30 free shares to its employees as part of the “We are Alstom” employee share ownership scheme, launched in 2016. After a two-year acquisition period, nearly 25,000 employees received these shares or their equivalent in the form of bonuses

Source: Alstom