Train-maker Alstom’s sales gain steam as orders beat estimates
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FRENCH train-maker Alstom posted an 8 per cent rise in third-quarter sales on Wednesday (Jan 25), helped by forecast-beating orders, particularly in Europe.
While its costs have increased due to supply-chain issues, the war in Ukraine and its acquisition of Bombardier Transportation’s rail business, its sales rose from a ramp-up in orders, as train ridership improved with the easing of Covid-19 restrictions.
Chief financial officer Laurent Martinez said he did not see any “sign of a slowdown in our demand globally”, adding that ridership was back to pre-Covid levels.
Alstom’s revenue for October to December – its fiscal third quarter – was 4.22 billion euros (S$6.04 billion), compared with 3.92 billion euros in the same period a year earlier.
Orders for the quarter, most of which came from Europe, increased by 13 per cent to 5.15 billion euros, and were 11 per cent higher than a consensus forecast cited by JPMorgan.
Alstom’s orders highlighted a “high level of activity in the rail industry, which is already visible in (companies’) large order announcements”, said JPMorgan analyst Akash Gupta.
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He expected the train-maker’s Swiss peer, Stadler, to report good quarterly orders as well.
In a call with analysts, Alstom confirmed its full-year outlooks and midterm objectives for the next financial year.
“The confirmation of guidance, while in line with expectations, should be seen as reassuring,” Citi analysts said.
Alstom’s shares were up 1.12 per cent as at 9.07 GMT. REUTERS
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