Alstom-Annual profit exceeds estimates, cash flow still in the red | Photo credits: Alstom Transport / TOMA – C. Sasso
May 11 (Reuters) – Alstom’s full-year operating profit beat market expectations on Wednesday, driven by its growth in Europe, as the French train maker highlighted a book record orders.
Alstom posted adjusted operating income of 767 million euros for the year ended March 31, above the average estimate of 757 million euros from analysts in a consensus established by the company.
Its order book stood at 81 billion euros at the end of the financial year.
“Our annual results are fully in line with our objectives, both in terms of financial and operational performance,” said Henri Poupart-Lafarge, Chairman of the Board of Directors and Chief Executive Officer, in a press release.
Although strong growth in Europe fueled Alstom’s profit advance, the group inherited difficult project integration costs after buying Canadian Bombardier’s rail business last year, which maintained its flow of cash in the red.
The French company, which manufactures trains and signaling systems for urban and regional rail networks, saw its negative free cash flow increase to 992 million euros at the end of March.
Alstom also said it confirmed its synergies, which should generate 400 million euros in 2024-2025 and between 475 million and 500 million euros per year from 2025-2026. (Report Juliette Portala in Gdansk, French version Elena Vardon, edited by Kate Entringer)