Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Paris  >  Alstom    ALO   FR0010220475

ALSTOM (ALO)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Alstom's Outlook Leaves Trains-to-Turbine Maker's Investors Cold

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/04/2012 | 06:41pm CEST

-Alstom disappoints with 3-year sales and operating margin guidance

-Alstom shares fall 4.5%

-Alstom's orders rose 14% in the year through March

-Alstom's sales fell 5% in year to end-March while net profit rose 58%

(Rewrites, adds detail, background throughout)

By Inti Landauro

Of

Alstom SA (>> ALSTOM), the French engineering group best known as a maker of high-speed trains and heavy-duty power equipment, Friday said it expects only modest rises in revenue and profitability over the next three years despite a bulging order book. The news left investors cold.

Alstom said it expects revenue will rise 5% a year over the next three years after falling 5% in the year ending in March 2012. The company said its operating margin will rise by just 0.9 percentage point over the same period to 8%.

That's well below the profitability of comparable businesses at its nearest rivals like General Electric Co. (GE), Switzerland's ABB Ltd. (>> Abb Ltd - Ord Shs) and Siemens AG (>> Siemens AG). The German industrial giant's conventional power-generation business has an operating profit margin of around 18% compared with Alstom's equivalent power unit's 9.7% margin.

Alstom, 30.7%-owned by French family-controlled conglomerate Bouygues SA (>> BOUYGUES), reported a 14% rise in orders in the year to March 31 to EUR21.71 billion. Alstom's order backlog reached EUR49.27 billion at the end of March, up from EUR47.38 billion three months earlier, due largely to strong demand in emerging markets for its power equipment.

"The Group achieved a solid commercial performance, illustrated by a book-to-bill ratio above one for every quarter of the fiscal year," said Chief Executive Patrick Kron.

But given the order backlog, the company's guidance is a bit disappointing, David Vos, analyst at Sanford C. Bernstein said. Management is perhaps just being extra cautious, Vos said. "I think they don't want to over promise and then under deliver."

Alstom shares closed 4.3% lower at EUR26.27, faring worse than the Paris bourse's benchmark CAC-40 index which was down 1.9%.

Alstom's net profit rose 58% to EUR732 million in the year to end-March as there was no repeat of restructuring costs that weighed down the previous year's performance but that was below the EUR817 million median expectation of analysts polled by data provider FactSet. Revenue fell 5% to EUR19.93 billion. Operating profit fell 10% to EUR1.41 billion.

Revenue from Alstom's thermal power fell 10%, while sales of Alstom's train division fell 8%. These declines were partly offset by rising revenues at its wind turbine and power-grid businesses.

Alstom's performance reflects the lagged impact of the financial crisis on its earnings due to the time it takes to build railroads and power plants. Several projects were put on hold in late 2008 and 2009 in rich countries, hitting Alstom's orders at a time when it was still benefiting from business signed before the crisis struck. Only recently has demand taken off again, mostly in emerging markets which now represent 60% of Alstom's orders.

Though Alstom's outlook wasn't particularly inspiring, the year to end-March does looks like the trough in its business cycle, Alfred Glaser, analyst at French brokerage house Cheuvreux.

-By Inti Landauro, Dow Jones Newswires; +33 1 4017 1740; [email protected]

Order free Annual Report for Siemens AG

Visit http://djnweurope.ar.wilink.com/?ticker=DE0007236101 or call +44 (0)208 391 6028

Order free Annual Report for Bouygues SA

Visit http://djnweurope.ar.wilink.com/?ticker=FR0000120503 or call +44 (0)208 391 6028

Order free Annual Report for General Electric Co.

Visit http://djnweurope.ar.wilink.com/?ticker=US3696041033 or call +44 (0)208 391 6028

Stocks mentioned in the article : ALSTOM, Siemens AG, Abb Ltd - Ord Shs, BOUYGUES
Stocks mentioned in the article
ChangeLast1st jan.
ABB LTD -2.51% 199.85 Delayed Quote.-6.95%
ABB LTD -2.92% 22.95 Delayed Quote.-9.49%
ALSTOM -1.21% 37.54 Real-time Quote.9.81%
BOUYGUES -1.90% 41.73 Real-time Quote.-1.78%
GENERAL ELECTRIC COMPANY -4.29% 14.05 Delayed Quote.-16.79%
SIEMENS -1.37% 104.82 Delayed Quote.-8.50%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ALSTOM
04/25ALSTOM : to Supply 32 Additional Citadis Dualis Tram-Trains to Ile-de-France Mob..
AQ
04/24ALSTOM : Receives Order to Supply Tram-Trains in France
DJ
04/24ALSTOM : to supply 32 additional Citadis Dualis tram-trains to Île-de-France Mob..
PU
04/24ALSTOM SA : Alstom to supply 32 additional Citadis Dualis tram-trains to Île-de-..
GL
04/24ALSTOM : to Supply Its Automatic Train Operation System to Line 6 of Paris' Metr..
AQ
04/24ALSTOM : wins three new locomotive maintenance contracts with Akiem, Macquarie E..
PU
04/23ALSTOM : to supply its automatic train operation system to line 6 of Paris&rsquo..
PU
04/23TELESTE OYJ : to supply Alstom with an integrated on-board solution for the metr..
AQ
04/23Siemens CEO says rail business performed well in Q2
RE
04/23ALSTOM : appoints Irina Lukoshkova as General Director for KEP JV in Almaty
PU
More news
News from SeekingAlpha
04/19Will GE Kick The Can Down The Road? 
02/16How Did GE Mess Up Its Alstom Power Acquisition? 
02/08SNC-Lavalin big winner in $6B Montreal rail project; Bombardier snubbed 
01/31GE : What Did Nelson Peltz And Trian Get Wrong? 
01/31Another Shoe To Drop At GE? 
Financials (€)
Sales 2018 7 695 M
EBIT 2018 467 M
Net income 2018 379 M
Debt 2018 194 M
Yield 2018 1,02%
P/E ratio 2018 22,86
P/E ratio 2019 21,83
EV / Sales 2018 1,13x
EV / Sales 2019 1,01x
Capitalization 8 526 M
Chart ALSTOM
Duration : Period :
Alstom Technical Analysis Chart | ALO | FR0010220475 | 4-Traders
Technical analysis trends ALSTOM
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 18
Average target price 38,5 €
Spread / Average Target 1,4%
EPS Revisions
Managers
NameTitle
Henri Poupart-Lafarge Chairman & Chief Executive Officer
Thierry Best Chief Operating Officer
Klaus J. Mangold Independent Non-Executive Director
Candace Krugman Beinecke Non-Executive Director
Gérard Hauser Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
ALSTOM9.81%10 414
ABB LTD-9.49%52 746
SHANGHAI ELECTRIC GROUP COMPANY LIMITED-13.45%11 826
ABB INDIA LTD-3.50%4 238
CHINA XD ELECTRIC CO., LTD.-10.07%3 195
HYUNDAI ELEVATOR CO LTD--.--%2 385