Overall length 251 metres Ended 31 December 2000

Significant growth in orders and sales


Orders received up 48% as reported, up 12% on a comparable
basis


Sales up 49% as reported, up 12% on a comparable basis


Exceptionally strong Third Quarter


Orders received in excess of 8.6 billion


Sales in excess of 7 billion


Record order backlog at 39.5 billion (including
5.6 billion long-term operation and maintenance
contracts)

See page 8 for explanatory notes to presentation

 

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

'For the first nine months, ALSTOM reports significant
progress in orders and sales across the board. This results
both from the confirmed sustained growth in the energy and
transport infrastructure markets and from the Companys
new dimension following the full integration of Power.

The record order backlog now over 39 billion, coupled
with ALSTOMs solid strategic foundations built up over
the past 2 years since its initial public offering, provide a
strong basis for the Companys future profitable
growth.'

 

Orders and Sales

During the first nine months of 2000/01, ALSTOM received
orders for a total amount of 19 411 million compared to
13 086 million for the first nine months of 1999/00.
This 48% increase is mainly the result of the full integration
of Power, supported by strong organic growth across the
Sectors

In addition to this major strategic initiative, the Company
concluded a number of smaller acquisitions during this period
including the acquisition of Transmission and Distribution
service activities, Norweb Contracting and Scottish Power in
the United Kingdom, a 51% stake in the Italian rail
manufacturer and tilting-train specialist, Fiat Ferroviaria,
the electrical contracting activities of Sunvic Contracting
(Germany) and Missenard Quint (France). These acquisitions
together accounted for 401 million in orders
received.

On a comparable basis, including 100% consolidation of Power
from 1 April 1999 and excluding the impact of these
acquisitions and disposals, the Company recorded strong organic
growth as orders received increased by 12%. All Sectors
contributed to this growth.

Sales recorded in the first nine months of 2000/01 amounted
to 17 724 million compared to 11 862 million
recorded during the same period last year. This 49% increase is
primarily a result of the full integration of Power.

On a comparable basis, sales increased by 12%. This is
mainly due to the strong increase in sales recorded by Power
following the high level of orders received by this Sector in
previous years.

Orders received increased in all major regions. Growth was
particularly strong in the United States (+42%) as a result of
the increased presence of Power in the region as well as the
order for the Queen Mary II cruise ship from US shipowner
Carnival/Cunard and a significant increase in orders for
Transmission and Distribution in the field of energy
management. Orders received in the European Union increased by
24% primarily as a result of major power plant orders in Spain,
Ireland and Turkey as well as an increase in orders by major
European rail operators, in particular French Railways,
SNCF.

Following the full integration of Power, ALSTOM benefits
from a more balanced geographic coverage. The European Union
accounted for 38% of orders received in the first nine months
of 2000/01 compared to 45% during the same period last year
whilst the Americas rose to over 30% (from 27%). Asia-Pacific
remained stable at 16% of orders received.

Currency Effect

Orders and sales have been positively impacted during the
first nine months by the translation effect between Euro and
non-Euro currencies. Overall this impact amounts to
approximately +5% for orders and +6% for sales, with Power
benefiting most as a result of its wider presence in non-Euro
zone countries, particularly the UK and the USA.

Outlook

During the third quarter, an acceleration of growth in
orders led to a total order intake of over 8.6 billion.
This is the highest level ever to be recorded in one quarter by
the Company as a significant number of major power plant,
transport system and cruise ship orders were concluded during
this period. Management does not expect to sustain this
exceptionally high level in the fourth quarter.

Nevertheless, given the volume of orders already recorded in
the order backlog during the first nine months and in the
context of sustained growth and improved conditions in energy
and transport infrastructure markets, management remains
confident in the outlook for strong order growth for the full
year 2000/01.

 

Comments by Sector

Power

The reported figures for Power - 8 573 million of
orders received during the first nine months of 2000/01
(compared to 4 059 million for the same period of
1999/00) and 8 943 million in sales (compared to
3 302 million) reflect the full consolidation of
this Sector from 11 May 2000 onwards. Orders received increased
by 111% and sales by 171%.

On a comparable basis, including 100% consolidation of Power
since 1 April 1999, total orders received during the first nine
months of 2000/01 amounted to 9 140 million (compared to
8 816 million for the same period of 1999/00) whilst
sales amounted to 9 494 million (compared to 7
754 million).

On a comparable basis, orders received increased by 4%. The
volume of orders received during the third quarter, over
3.9 billion, was particularly high. Growth in orders
received in hydro, environment, heavy-duty gas turbines and
customer service segments has more than compensated the reduced
level of orders for steam power plants, following the
exceptionally high level of steam orders recorded during the
same period last year.

During the first nine months, Power has recorded significant
commercial successes in Mexico with orders awarded for the
first 230 MW phase of the turnkey Tamuin power plant project
which will integrate ALSTOMs circulating fluidized bed
(CFB) technology, for 4 x 25 MW geothermal power plants in Los
Azufres, for the supply of 3 x GT11N2 gas turbines for the
repowering of Unit 4 of the Valle de Mexico thermal power plant
and for the 3 x 310 MW Chicoasen hydro power plant.

Other major orders recorded include heat recovery steam
generator equipment, 8 x 230 MW turbine generator sets and
environmental equipment in the United States, the Son Reus 3 x
GT8C combined-cycle power plant in Spain and the 160 MW CFB
lignite power plant in Turkey.

In the field of heavy-duty gas turbines, following the
technical issues encountered during the launch of the GT24/26
machines, stabilisation modifications are progressing as
planned whilst the Company continues its negotiations with
customers. During the third quarter 2000/01, Power was awarded
orders for 3 x GT13E2 gas turbines for the Lumut project in
Malaysia, 3 x GT13E2 gas turbines for Ras Abu Fontas in Qatar
and 5 x GT11N2 gas turbines for BIOC in Iran. These orders mark
the first successes of Powers strategy to re-deploy its
commercial force towards the upgraded versions of gas turbine
models GT 11 and 13, both with solid operating track records.
This brings total orders received in heavy duty gas turbines to
over 3 billion for calendar year 2000 in line with the
Companys previously communicated target.

On a comparable basis, sales increased by 22%. This is a
result of Powers significant order backlog built up over
the past few years translating through to sales, particularly
in the field of steam power plants and boilers.

Major deliveries during the period include equipment for
steam power plants in Taiwan (Ho-Ping 2 x 660 MW), Saudi Arabia
(Shoaiba 3 x 368 MW) and Malaysia (Manjung 3 x 700 MW), for a
nuclear power plant in China (Ling Ao) and for gas turbine and
combined cycle plants in the USA, Mexico, Luxemburg, Tunisia,
Egypt, Taiwan, Australia and Singapore.

 

Transmission and Distribution

Transmission and Distribution continued to record strong
growth during the first nine months of 2000/01 with orders
received amounting to 2 234 million compared to 1
823 million for the same period of 1999/00, an increase of 23%
(+20% on a comparable basis).

At over 650 million, orders received during the third
quarter were 20% above the exceptionally low level of orders
received in the third quarter of 1999/00, further confirmation
of the recovery in market volumes.

This positive trend during the first nine months has been
observed across all Transmission and Distribution businesses
and results both from the award of significant orders for
transmission and distribution systems and sound growth in the
product business.

The newly consolidated service activities of Norweb
Contracting and Scottish Power acquired in the first half of
2000/01 have been successfully integrated into the Sector and
accounted for 55 million of orders received during the
period.

Orders received in the field of energy management amounted
to 190 million in the first nine months, an increase of
265% compared to the level recorded in the same period of
1999/00. A number of major orders for energy management systems
and software were received from independent system operators
(ISOs) in the USA.

Transmission and Distribution has continued to expand its
geographical scope, notably with an increase of 32% in the
Americas. Orders received have more than doubled in the United
States, notably due to the significant growth in the energy
management business as well as a major order for 15
transformers awarded by Duke Fluor Daniel. In Asia, the
recovery in market volumes is confirmed and the Sector has
recorded a 43% increase in the first nine months, partly the
result of the major order for a 500 MW HVDC line in India. The
recent creation of a power transformer joint venture in
Shanghai will further enhance ALSTOMs market penetration
in this region.

The 5% increase in sales recorded during the first nine
months is partly the result of additional sales of 75
million contributed by the recent acquisitions. The full impact
of improved orders is not yet translated through to sales
increased 1% on a comparable basis.

Major deliveries during the first nine months of 2000/01
include gas insulated switchgear equipment in Dubai, and energy
management systems in the United States.

 

Transport

Transport continued to benefit from strong market
conditions. Orders received increased 43%, from 2 952
million in the first nine months of 1999/00 to 4 216
million for the same period this year.

Excluding the impact of acquisitions (Fiat Ferroviaria and
Traxis) newly consolidated during the period and accounting for
257 million of orders received, Transport recorded order
growth of 34% on a comparable basis

This positive trend is mainly the result of renewed
investment by major European railway operators. In France,
ALSTOM was awarded orders for the supply of 22 TGV Duplex
double-deck trainsets as well as double-deck cars for regional
lines for SNCF and the turnkey contract for the Bordeaux
tramway which will incorporate the supply and maintenance of
CITADISTM trams. In Italy, Transport has won orders for the
electrification and signaling of the Milano-Bologna-Firenze
high-speed lines whilst Portuguese railways has awarded ALSTOM
a major order for the modernisation of 57 trainsets.

Other major orders received during the first nine months of
2000/01 include 152 metro cars for the Shanghai Xi Min Line
(China), 92 metro cars for the extension of the Santiago metro
(Chile), and complete transport systems for Line 5 of the Sao
Paulo metro in Brazil and the Blue Line of the Bangkok Metro in
Thailand.

Integration of the Fiat Ferroviaria activities, with
locations in Italy, Switzerland and UK is progressing rapidly
following finalisation of ALSTOMs acquisition of a 51%
stake in the tilting-train specialist in October 2000. A major
order for electrical tilting trains for Czech railways was
received during the third quarter.

Orders awarded but not registered in the order book as at 31
December 2000 include the complete refurbishment of 364 metro
cars for the Washington Metropolitan Area Transit Authority and
the turnkey contract for a new automatic metro line in
Singapore including the supply of 7 x 3 car trainsets, the
electromechanical system, and total track infrastructure.

In November 2000, the Company announced that it had entered
into an agreement in principle with General Motors
Electro-Motive Division to form a Joint Venture providing
locomotive maintenance services to railroad customers
world-wide. The two parties are continuing to make progress
towards the successful conclusion of this transaction.

Sales increased slightly (+3%) to 2 948 million. This
includes 115 million of sales recorded by the newly
consolidated activities which has more than off-set the low
level of sales recorded by existing businesses. Sales decreased
by 1% on a comparable basis. This low level is due both to the
exceptionally high level of deliveries made last year, in
particular complete TGV sets for the Korean High Speed Link and
the below average level of deliveries in France during the
period following a low level of investment from SNCF during the
late 1990s.

 

Contracting

Orders received by Contracting increased by 22% from
1 729 million during the first nine months of 1999/00 to
2 104 million.

This strong increase is partly the result of external growth
with the newly consolidated activities of Sunvic Contracting
and Missenard Quint accounting for a total order intake of
89 million.

In parallel, Contracting has continued to benefit from
favourable economic conditions in Western Europe. Orders
received increased by 17% on a comparable basis. The Sector has
been awarded a number of large systems contracts. These include
the order for baggage handling and sorting systems for the
Paris Airport Authority, the rehabilitation of the
instrumentation and control system for the BAPCO oil refinery
in Bahrain and the rehabilitation of the electrical equipment
and installation of the Tunnel du Mont-Blanc in the French
Alps.

Sales in the period increased by 8% (3% on a comparable
basis) partly as a result of significant service and
installation work carried out during the period including work
for the Arianespace rocket launch facilities in French Guyana
and for the sewage treatment plant Ulu Pandan in Singapore for
which a 5 year maintenance contract has been signed. The
integration of new acquisitions accounted, in aggregate, for
82 million of sales.

FACEO, Contractings recently created joint venture
with Thales (formerly Thomson Gestion Immobilière)
successfully began operations in the field of facility
management in December 2000.

 

Power Conversion

During the first 9 Months 2000/01, Power Conversion received
orders amounting to 567 million compared to 389
million during the same period 1999/00. This 46% increase is
mainly due to the significant upturn in marine-related
activities with major orders awarded by Mitsubishi, Hyundai and
the UK and French navies.

Sales amounted to 434 million, a decrease of 14%
compared to the same period in 1999/00. This is mainly due to
the low level of orders received last year from customers in
the process industries, and in particular in the steel industry
in the UK and the USA.

 

Marine

During the third quarter of 2000/01, Marine was awarded
orders for three major cruise-ships: firstly, the Queen Mary
II, a 2 800-passenger transatlantic cruise-liner which was
confirmed by Carnival/Cunard in November, secondly a 550-cabin
deluxe cruise ship for Japanese ship owner Nippon Yusen
Kabushiki Kaisha (NYK), a new customer for ALSTOM, and most
recently a 780-cabin cruise ship for Italian-Swiss ship owner
Mediterranean Shipping Company (MSC). This brought orders
received to 1 509 million for the first nine months of
2000/01.

Consequently, the order backlog stands at a record level of
3.9 billion and comprises 12 cruise ships, two
high-speed ferries and two surveillance frigates. This does not
include options for three further cruise ships, two with
P&O and one with MSC.

Sales during the first nine months rose by 28% to 1
367 million. In this period, ALSTOM delivered three cruise
ships, two high-speed ferries and a number of smaller vessels.
Marine remains on track to deliver a record 6 cruise ships
during the full year 2000/01.

 

Explanatory Notes

Analysis of orders received and sales on a comparable basis


The following adjustments have been made to evaluate orders
received and sales on a comparable basis

Orders received and sales contributed by Power are
consolidated 100% from 1 April 1999 (see note 1.1),


Orders received and sales contributed by discontinued
businesses of the former Industry Sector have been excluded as
if all of the disposals occurred on 31 March 1999 (see note
1.2),


Orders received and sales contributed by activities acquired
during the first nine months of 2000/01 have been excluded (see
note 1.3).


1.1 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 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)
whilst for the period 1 July 31 December 1999, ALSTOM
consolidated 50% of ABB ALSTOM POWER. For the First Nine Months
2000/01, the figures reflect the 50% consolidation of ABB
ALSTOM POWER from 1 April 2000 10 May 2000 and the 100%
consolidation of ALSTOM Power from 11 May 2000 31
December 2000.

1.2 Others / Discontinued businesses

For the first nine months of 1999/00, the reported figures
for 'Others' includes the orders and sales figures of units of
the former Industry Sector which have since been disposed of as
well as the orders and sales of ALSTOMs Country Network.
In the first nine months 2000/01, the reported figures for
'Others' includes mainly the orders and sales of ALSTOMs
Country Network as well as overseas activities not allocated to
a specific Sector (see note 2 below).

For the purposes of comparison, the table below sets out
'Others' for the first nine months 1999/00 excluding the orders
received and sales contributed by the discontinued businesses
as if all of the disposals occurred on 31 March 1999.

1.3 Acquisitions

The table below sets out orders received and sales
contributed to Transmission and Distribution, Transport and
Contracting by activities acquired during the first nine months
of 2000/01.

1.4 Comparable basis figures

 

2. Allocation of Overseas activities to corresponding
Sectors

As of 1 April 2000, we allocated ALSTOM overseas activities
in Australia, New Zealand, South Africa and India to the
corresponding ALSTOM Sectors. The published first nine months
1999/00 figures have been restated to include the impact of
this allocation.

The table below sets out the breakdown of overseas
activities for the first nine months of 1999/00 and 2000/01
following this restatement.

 

Contacts :

Press enquiries:


G. Tourvieille


(Tel. +33 1 47 55 23 15)

gilles.tourvieille@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.