2010/11 Half-year results in line with guidance
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Between 1st April 2010 and 30th September 2010, Alstom registered a low level of order intake, as demand continued to be affected by some weak end-markets in Power. Over this first half year 2010/11, sales amounted to 10.4 billion including Grid, and income from operations reached 763 million, corresponding to a margin of 7.3%. The net result stood at 401 million, whilst the free cash flow was negative at (963) million, due to the low volume of orders and the lack of large turnkey contracts.
During the first half of 2010/11, demand remained weak for new thermal power equipments in mature markets, leading to a low level of order intake. To address this situation, a restructuring plan was launched in the concerned European and North-American businesses. The rest of the portfolio has been doing better with a number of opportunities being worked upon, notably in the emerging countries. While cash generation was strongly impacted by the level and nature of orders, the operational performance was overall in line with expectations, as illustrated by the evolution of sales and margin. This performance combined with the expected impact of the adjustment plan on costs allow us to confirm that over the current and next fiscal years, the Groups operating margin should stay within a 7 to 8% bracket, said Patrick Kron, Alstoms Chairman & Chief Executive Officer.
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