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July 19, 2022

Alstom hints at inflation headwinds even as quarterly sales rise

The firm has received €5.6bn worth of orders in the first quarter, down 13% from a year ago.

French rolling stock manufacturer Alstom has reported €4bn in sales for the first quarter, an 8% rise compared with €3.7bn during the same period last year.

The company posted 63% and 19% sales growth in the systems and services segment to €388m and €909m, respectively.

Sales rose 1% to €2.1bn in the rolling stock segment while remaining flat in the signalling segment at €530m.

Alstom received €5.6bn of orders this quarter, with its rolling stock and services businesses contributing strongly to the figure.

Europe accounted for 70% of the total order intake. 

The services, signalling, and system segments constituted 46% of the total orders, with the services segment securing orders worth around €1.8bn.

However, the order intake this quarter was 13% lower than a year earlier.

Alstom chairman and CEO Henri Poupart-Lafarge said: “Alstom has recorded a solid quarterly order intake on the back of a continuously sound market.

“In particular, the Group secured a landmark contract to supply 130 Coradia Stream trains with 30 years of maintenance for the state of Baden-Württemberg, demonstrating our leadership in Germany.

“Our sales have developed as expected, thanks to the stabilisation of our Rolling Stock projects and strong performance in Services and Systems.”

For 2022/23 fiscal year, Alstom anticipates sales growth with a ‘solid’ order backlog, a progressive year-on-year growth in margin for adjusted earnings before interest and taxes (EBIT) and free cash flow generation.

However, it flagged that inflation and components shortage could impact deliveries.

This year in May, Alstom unveiled its enhanced ESG 2025, with plans to reach net zero carbon in its value chain by 2050.

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