Arab Today, arab today alstom reports strong rail activities shares rally
Last Updated : GMT 12:32:41
Arab Today, arab today
Arab Today, arab today

Alstom reports strong rail activities, shares rally

Arab Today, arab today

Arab Today, arab today Alstom reports strong rail activities, shares rally

A high-speed train produced by Alstom
Paris - AFP

 French engineering group Alstom reported sales and order figures on Wednesday which fit its controversial strategy of selling energy assets to focus on being a world leader in rail equipment.
The company, a top name in French industry which is to sell power assets to GE, has taken record orders thanks to a huge rail contract in South Africa, and said it expected the rail division to do well.
But its energy division is still suffering because of weak demand in the power-generation industry, it said a month after agreeing a tie-up with US group General Electric which was highly controversial in France.
The sales figures showed an overall fall of 4.0 percent to 4.34 billion euros ($5.8 billion) in the quarter to the end of June, which marks the first quarter of its 2014-2015 financial year.
Shares in the group were showing a gain of 1.84 percent to 27.90 euros in early trading. The overall French market as measured by the CAC 40 index was up 0.44 percent.
However, the outcome was slightly below analysts' expectations, and reflected a 13.0-percent fall in sales by the thermal power division, a 17.0-percent fall by the renewable energy activities and a 9.0-percent fall by the electrical network operations.
New orders taken by the thermal power division, part of which is to be sold to US group General Electric, also suffered.
But orders taken by the entire group doubled from the equivalent figure last year to 8.2 billion euros, with a strong performance by the rail division which Alstom, builder of TGV high-speed trains, now intends to make its main business and the world leader.
Under its agreements with GE, it is to buy GE's rail signalling activities.
"From 1 April to 30 June 2014, Alstom booked 8.2 billion euros of orders, twice the level of the first quarter last year," the group said in a statement.
"This record performance derives essentially from a contract with PRASA in South Africa booked in transport for around 4 billion euros, as well as a good flow of orders in renewable power and grid."
The South African order, worth about 4.0 billion euros, is for 600 trains for urban-region rail services, and for maintenance and spare parts for 18 years.
This takes the total order book to 56 billion euros at the end of June, representing two and a half years of work.
- Strong start to year -
Chief executive Patrick Kron said that the "first quarter’s orders made for a strong start of the year, thanks to transport which maintained a good commercial dynamic."
He said: "We expect transport to achieve a good commercial performance this year with sales to grow organically at a sustained pace."
Referring to the agreements with GE, he said: "We expect to call for a shareholders’ meeting before the end of 2014 for a decision on the deal."
Alstom is in the process of selling its power-generation turbine business to General Electric with which it is also to tie-up energy ventures as a result of controversial negotiations last month.
The French government, which was initially hostile to a GE takeover of Alstom's energy assets, has taken an option to become a shareholder in Alstom, a pillar of French industry.
Alstom, which was under pressure on the stock market and from looming financial strains, had said it had to restructure its business because it was not big enough in the global market for power generation, and also because of weak demand in its main energy market in Europe.
But the group had already offered part of its rail operations for sale, before GE emerged as a serious bidder for power assets.
Alstom did not offer forecasts for its performance this year, but said that the growth of 17.0 percent of sales in the first quarter would not be sustained throughout the year.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today alstom reports strong rail activities shares rally Arab Today, arab today alstom reports strong rail activities shares rally

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:57 2017 Sunday ,26 February

Huawei wins MRM Business Innovation Award

GMT 08:49 2017 Saturday ,25 February

Shell plans $300 mn investment in Argentina shale

GMT 05:40 2017 Saturday ,25 February

British Airways owner reports profit

GMT 15:19 2017 Thursday ,23 February

Companies' commitment to Bahrainisation quotas praised

GMT 14:48 2017 Thursday ,23 February

Etihad Airways Engineering signs deal with Kenya Airways

GMT 12:25 2017 Thursday ,23 February

Bharti Airtel buys Telenor's India operations
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday