(Reuters) – Alstom, the world’s second-largest train maker after China’s state-owned CRRC, reported first-half adjusted operating profit above expectations on Wednesday, citing strong sales performance and demand robust.
The TGV manufacturer also exceeded cash flow expectations, thanks in particular to increased volumes and cost reductions.
Adjusted operating profit for the first half stood at 515 million euros, above a median consensus provided by the group of 507 million euros.
Alstom further reported negative cash flow at €138 million, while analysts expected -€354 million, according to the company’s consensus.
Cash flow was helped by better-than-expected sales and higher-than-expected deposit payments, Martin Vaujour, head of investor relations, said on a conference call with reporters.
Half-year sales for their part increased by 5.6% organically to reach 8.78 billion euros, in line with the consensus of 8.77 billion euros.
The group, which experienced cash flow problems at the start of the year partly linked to the 2021 acquisition of Bombardier’s railway activities, has fully executed its debt reduction plan unveiled last May, including an increase in capital of around 1 billion euros.
“Demand remains robust, supported by green mobility policies, and is resilient in the face of geopolitical tensions, and we achieved a solid commercial performance during this first half,” CEO Henri Poupart-Lafarge said in a statement. press release.
The group also said it was focusing on ramping up a number of projects in the start-up phase, with planned production of 4,400 to 4,600 cars for the fiscal year, despite the difficulties encountered in the supply chain. .
The train manufacturer plans in particular to increase its production to reach a range of 2,400 to 2,600 train cars in the second half of the year, compared to 2,000 in the first half, said Martin Vaujour.
Orders received stood at 10.95 billion euros as of September 30, against a median consensus of 10.65 billion.
Alstom also confirmed its outlook for its 2024/2025 fiscal year.
(Written by Diana Mandiá, with Alban Kacher and Anna Peverieri, edited by Augustin Turpin)
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