Orders and Sales for the First Quarter Ended 30 June
2000

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Strategic repositioning reflected in First Quarter orders
and sales


Orders up to 4.6 billion


Strong order backlog : 36 billion (including 5.2
billion long-term service contracts)

In million Orders Received Net Sales
1
st Quarter2000/01
1
st Quarter1999/00
1
st Quarter2000/01
1
st Quarter1999/00
Power

1 700

1 000

2 252

620

T&D

791

624

595

621

Transport

1 139

1 025

874

1 023

Contracting

699

579

545

480

Power Conversion

167

108

131

134

Marine

22

69

624

393

Others

75

306

85

225

Total

4 593

3 711

5 106

3 496



See page 4 for explanatory notes to presentation

Commenting on the First Quarter Orders and Sales, announced
this morning, Pierre Bilger, Chairman and Chief Executive
Officer of ALSTOM stated:

'ALSTOMs strategic repositioning, completed during
this first quarter, is now reflected in our reported figures
and fully operational in the field. Moving forward in our new
configuration, orders received increased by 24% and sales by
46% as compared to the same period last year. Increases in
orders in our shorter-cycle activities, T&D, Contracting
and Power Conversion, bear witness to continuing economic
growth world-wide'

Orders and Sales

During the First Quarter 2000/01, ALSTOM received orders
amounting to 4 593 million. In addition to the
mechanical effect of the full integration of ALSTOM Power since
11 May 2000, organic growth in T&D, Contracting and Power
Conversion has also contributed substantially to this overall
increase of 24% as compared to the first quarter 1999/00.

The geographic breakdown of orders has evolved significantly
as a result of the new dimension of the Power Sector and, in
particular, its extended presence in North America, which
represented 30% of orders received in Power during the First
Quarter 2000/01 compared to 3% one year ago.

Sales in the First Quarter 2000/01 amounted to 5 106
million, a 46% increase compared to the same period last year.
This increase comes mainly from Power, which represented 44% of
the total sales recorded during the period.

Breakdown by Sector

The reported figures for Power 1 700 million
in orders received and 2 252 million in sales - reflect
the 50% consolidation of this Sector from 1 April 10
May 2000 and full consolidation from 11 May 2000 onwards
following ALSTOMs acquisition of ABBs 50% share
in the hitherto jointly owned power company. On a pro forma
basis, including 100% of the power activity from 1 April 2000,
total orders amounted to 2 268 million whilst sales
amounted to 2 803 million.

Major orders received during the First Quarter included 8
gas turbines for power projects in North America, and another
for 4 gas turbines in the Middle East. In Azerbaijan, a
contract was awarded to supply a 58 MW gas turbine together
with a heat recovery steam generator. Six heat recovery steam
generators are also on order for a 625 MW power plant in the
US. In hydro power, orders were received to supply turbines for
projects in Canada and India. Major steam power plant orders,
absent in this first quarter, are expected later in the
year.

The significantly high level of order intake in Transmission
& Distribution in the First Quarter 2000/01 (+27%) is
mainly the result of a number of exceptionally large orders
received in the field of Transmission. Despite the exceptional
nature of this increase however, the general recovery in
activity already observed during the last quarter of 1999/00
has been confirmed in this first quarter.

Order intake has been particularly buoyant in the domain of
energy management. This new software-based activity has been
awarded contracts, mainly in the USA, for a total amount of
around 100 million reinforcing ALSTOM's leadership in
this fast growing business. Other major orders include a 500 MW
HVDC transmission line in India and a contract for substations
and high voltage equipment for the West Coast Main Line in the
UK.

The 4% decrease in sales during the First Quarter is the
direct result of the low level of order intake recorded during
1999/00.

ALSTOM has recently completed two acquisitions in the field
of Operation and Maintenance in the UK. In line with ALSTOM's
strategy, these acquisitions of the former service activities
of two major utilities enable the Company to significantly
enhance its T&D maintenance capabilities.

On a comparable basis, order intake in Transport remained
stable at an already high level of over 1 billion. With
the inclusion of the Transport-related overseas activities, the
Sectors orders increased by 11%. Major orders received
during the First Quarter include the supply of 38 CITADISTM
trams for Bordeaux (France) and track maintenance contracts in
Mexico and Thailand.

The 15% decrease in sales recorded during the First Quarter
is mainly due to the exceptionally high level of deliveries
carried out during the same period last year, and in particular
deliveries for the Korean High Speed Link. Major Transport
deliveries completed during this First Quarter include the
Montpellier tramway, railcars for SNCF and Deutsche Bahn,
renovation of metro cars for Chicago Transit Authority and the
supply of double-deck cars for Amtrak in the USA.

During the First Quarter, ALSTOM announced its acquisition
of a 51% stake in Fiat Ferroviaria, the rail transport
subsidiary of the Italian group Fiat and world leader in
tilting technology. This transaction remains subject to
regulatory approvals and the financial impact is not yet
recorded in the Companys reported figures.

Overall, for the full year, the inclusion of sales from Fiat
Ferroviaria is expected to off-set the anticipated lower level
of organic sales compared to last years record high of
over 4 billion in the Transport Sector which is due to
the phasing of major deliveries and the below average level of
sales to French railway operator SNCF scheduled during the
year.

Contracting has continued to benefit from improved economic
conditions in Western Europe during the period. A very high
level of order intake (+21%) was recorded partly the result of
acquisitions consolidated during the quarter (Missenard Quint
and Sunvic Contracting with an aggregate order intake of
24 million during the period) and partly as a result of
major orders received in the field of electrical engineering
for the Paris airport authority (Aéroports de Paris), in
the field of climate-control for the Basle/Mulhouse airport,
for the supply of a SCADA control system in Germany as well as
for the electrical installation of Ariane rocket launch pads in
French Guyana. Significant progress was also recorded in sales
(+8% organic growth, +14% including acquisitions), reflecting
the translation into sales of the high order intake of the last
quarter of 1999/2000.

Power Conversion, ALSTOMs most recently created
Sector is making good progress with a 55% increase in orders
compared to the same period last year. Major orders received
include electrical marine propulsion systems for Mitsubishi for
a passenger liner and for Hyundai for cable-laying ships as
well as contracts for the revamping of a steelworks in Germany.
Sales decreased by 2% compared to the First Quarter
1999/00.

No major orders were recorded by Marine during the First
Quarter 2000/01 as was the case one year earlier. The letter of
intent for the 2 800-passenger transatlantic cruise-liner,
Queen Mary 2, has not yet been registered as a firm order and
is therefore not included in Marines order book. Sales,
on the other hand, rose by a significant 59% as a result of the
past high level of orders received translating into sales. 2
cruise ships were completed and delivered during the period :
the 350-cabin cruise-ship R Six to Renaissance Cruises and the
1 019-cabin Millennium to Royal Caribbean for Celebrity
Cruises. In addition, two 60t harbour tugs were delivered to
French customer, Les Abeilles and two high-speed vessels were
delivered, the Aelos Express to NEL Lines (Greece) and NGV
Liamone to SNCM (France).

 

Explanatory Notes

Power Figures

As a result of the complete strategic repositioning of the
former Energy Sector, the reported figures for 1999/00 and
2000/01 are not directly comparable. For the period 1 April
30 June 1999, the orders and sales figures reflect the
composition of the former Energy Sector (including the heavy
duty gas turbine business subsequently sold to General Electric
on 25 June 1999). For the First Quarter 2000/01, the figures
reflect the 50% consolidation of ABB ALSTOM POWER from 1 April
10 May 2000 and the 100% consolidation of ALSTOM Power
from 11 May 30 June 2000.

Contracting Figures

The First Quarter 1999/00 orders and sales figures for
Contracting have been restated to include the impact of the
transfer of businesses from the former Industry Sector, namely
Industrial Systems and Services and a number of former Cegelec
overseas activities. This has resulted in an increase of
72 million in orders and 84 million in sales
compared to last years reported figures for the same
period.

Allocation of Overseas activities to corresponding
Sectors

The published First Quarter 1999/00 figures have been
restated to include the impact of the allocation of ALSTOM
overseas activities in Australia, New Zealand, South Africa and
India to the corresponding ALSTOM Sectors. The impact of this
change of perimeter for the First Quarters ending 30 June 1999
and 2000 is as follows :

In million Orders Received Net Sales
1
st Quarter2000/01
1
st Quarter1999/00
1
st Quarter2000/01
1
st Quarter1999/00
Transmission &
Distribution

66

49

62

47

Transport

107

1

19

3

Contracting

15

18

19

13

Power Conversion

12

8

11

4

Others

58

46

61

35

Total Overseas

258

122

172

102



 

Change in timing of recognition of Long-term service
contracts

From 1 April 2000, in order to align itself with common
industry practices, ALSTOM has changed the way in which it
recognises long-term service contracts. Under the old method,
only the portion of long-term service contracts to be executed
during any given financial period, was recorded in the order
book for that period. Under the new method, the total amount of
the long-term service contract is recorded in the period during
which the order is confirmed.

Others

For the First Quarter 99/00, 'Others' includes the orders
and sales figures of units of the former Industry Sector which
have since been disposed as well as the orders and sales of
ALSTOMs Country Network. In the First Quarter 2000/01,
'Others' includes mainly the orders and sales of ALSTOMs
Country Network as well as the orders and sales of disposed
activities included in the perimeter of consolidation up until
the date of disposal and overseas activities not allocated to a
specific Sector.



Contacts

Press enquiries:

G. Tourvieille / S. Gagneraud (Tel. +33 1 47 55 23 15 or 1
47 55 25 87)

gilles.tourvieille@chq.alstom.com
severine.gagneraud@chq.alstom.com

Investor relations:

H. Green / K. Belghaieb (Tel. +33 1 47 55 25 78)

investor.relations@chq.alstom.com

Internet :
http://www.wcm.alstom.com

 

* * *



Forward-Looking Statements

This press release contains, and other written or oral
reports and communications of ALSTOM may from time to time
contain, forward-looking statements, within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Such statements appear,
without limitation, in the section entitled Breakdown by
Sector. Examples of such forward-looking statements include,
but are not limited to (i) projections or expectations of
sales, income, operating margins, dividends or other financial
items or ratios, (ii) statements of plans, objectives or goals
of the Company or its management, (iii) statements of future
product or economic performance and (iv) statements of
assumptions underlying such statements. Words such as
'believes,' 'anticipates,' 'expects,' 'intends,' 'aims,'
'plans' and 'will' and similar expressions are intended to
identify forward-looking statements but are not the exclusive
means of identifying such statements.

By their very nature, forward-looking statements involve
inherent risks and uncertainties that the forecasts,
projections and other forward-looking statements will not be
achieved. Such statements are based on managements
current plans and expectations and are subject to a number of
important factors that could cause actual results to differ
materially from the plans, objectives and expectations
expressed in such forward-looking statements. These factors
include: (i) the inherent difficulty of forecasting future
market conditions, interest rates and exchange rates; (ii) the
effects of, and changes in, laws, regulations, governmental
policy, taxation or accounting standards or practices; (iii)
the effects of competition in the product markets and
geographic areas in which ALSTOM operates; (iv) the ability to
increase market share, control costs and enhance cash
generation while maintaining high quality products and
services; (v) the timely development of new products and
services; (vi) the inherent technical complexity of many of the
Companys products and the ability to resolve effectively
and at reasonable cost technical problems that inevitably
arise; (vii) risks inherent in large contracts that comprise a
substantial portion of the Companys business; (viii) the
effects of acquisitions and disposals; (ix) the ability to
invest in successfully, and compete at the leading edge of,
technology developments across all of the Companys
Sectors; (x) the availability of adequate cash flow to achieve
managements objectives or goals; and (xi) ALSTOMs
success at adjusting to and managing the risks of the
foregoing. ALSTOM cautions that the foregoing list of important
factors is not exhaustive; when relying on forward-looking
statements to make decisions with respect to the Company,
investors and others should carefully consider the foregoing
factors and other uncertainties and events, as well as other
factors described in other documents ALSTOM files from time to
time with the Securities and Exchange Commission, including
reports on Form 6-K. Such forward-looking statements speak only
as of the date on which they are made, and ALSTOM undertakes no
obligation to update or revise any of them, whether as a result
of new information, future events or otherwise.



Appendix 1 : Orders and Sales by Geographic Region

In % Orders Received Net Sales
1
st Quarter1999/00
1
st Quarter2000/01
1
st Quarter1999/00
1
st Quarter2000/01
European Union

55

38

55

38

Rest of Europe

3

6

4

5

North America

11

17

11

28

South America

11

11

9

7

Africa - Middle East

6

10

6

6

Asia-Pacific

15

18

15

16

Total

100

100

100

100