By Pierre Bertrand
Alstom, the French trainmaker, has announced an increase in sales and orders for the third quarter, while also confirming its outlook for fiscal 2024.
Sales and Orders Growth
In the period, Alstom generated €4.33 billion ($4.70 billion) in sales, representing a 2.6% increase compared to the previous year. The company also reported a 4.6% organic increase.
Order intake for the quarter amounted to €5.45 billion, marking a 5.8% rise from the same period last year. Notably, Alstom's services, signalling, and systems accounted for 84% of the total order intake. The company's book-to-bill ratio stood at 1.3.
New Orders and Europe Market
Alstom revealed that Europe accounted for 34% of its new orders, citing the extension of an eight-year train services agreement with CrossCountry in the U.K., with an estimated value of approximately €950 million.
Order Backlog
As of the end of December, Alstom's order backlog reached €90.3 billion.
Cost-Savings Plan and Deleveraging
Alstom previously announced plans to reduce debt and improve profitability by cutting 1,500 full-time jobs and proposing to scrap a dividend for fiscal 2024. The company stated that it is making progress in executing its deleveraging plan.
Outlook
Chief Executive Henri Poupart-Lafarge affirmed Alstom's outlook for the fiscal year and reiterated its mid-term targets.
