Key milestones achieved in the project with General Electric
Between 1 April and 30 September 2014, Alstom booked a record €6.4 billion of orders, more than twice the level of last year’s first-half. The book-to-bill ratio, at 2.1, was notably boosted by a €4 billion contract in South Africa. Over the same period, sales were up 13% organically, amounting to €3.1 billion. The operating margin (after corporate costs) improved by 30 bps thanks to the increase in sales, the progressive implementation of the d2e performance plan and despite ramp-up costs of new platforms.
Group net profit (continued and discontinued) reached €255 million and free cash flow at €(1,376) million was mainly affected by negative working capital change.
The project between Alstom and General Electric is moving ahead, with works council consultations completed, the sale contract and other agreements signed as well as the French Foreign Investment authorisation obtained. Alstom’s General Meeting, where the approval of the transaction will be submitted to the shareholders’ vote, is to be convened on 19 December 2014.
“The project with General Electric is progressing well. Following the completion of the information-consultation with works councils we have signed the final agreements with General Electric. The French Foreign Investment authorisation has also been granted. Alstom’s Board of Directors has consequently decided to call for a shareholders’ meeting on 19th December to vote on the transaction. Should the shareholders approve it, General Electric’s offer would still be subject to authorisations from regulatory and competition bodies in a number of jurisdictions. After completion of this transaction, the Group will focus on its Transport business with positive perspectives for sales growth and operating profit improvement”, said Patrick Kron, Alstom’s Chairman & Chief Executive Officer.
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