Europe fuels sales growth for French train maker Alstom
French train maker Alstom reported a rise in third-quarter sales on Thursday, bolstered by contract wins in Europe and stronger market clout as it integrates the rail unit it bought from Bombardier last year.
The Paris-based firm reported sales of 3.92 billion euros ($4.45 billion), compared with the 3.71 billion euros generated a year ago, adjusting for acquisitions and foreign exchange rates.
“Our sales have progressed as announced, thanks to production ramp-up and stabilisation of our rolling stock projects and strong performance in Services,” Chairman and Chief Executive Officer Henri Poupart-Lafarge said in a statement.
The group had performed particularly well in Europe, helped by its larger scope and portfolio due to the Bombardier acquisition, which is approaching its one-year anniversary, Poupart-Lafarge said, adding that the integration was on track.
The 5.5 billion-euro acquisition can make the group into the world’s second-biggest player in the sector behind China’s CRRC .
The group, which makes trains and signalling systems for urban and regional rail networks, also confirmed that it aimed to return to a positive-free cash flow in the second half of the year ending March 31.
It had reported outflows of nearly 1.5 billion euros during April-September – a lower figure than expected – as integration costs from the Bombardier rail deal weighed on its balance sheet.
The company also confirmed its remaining targets for the full year, including an improved core profit and second-half sales surpassing the 7.4 billion euros it booked over the first six months.
