Alstom: always higher after its results

Always higher for the action Alstom (PA:ALSO), which rose 5% to more than 40 euros, found levels lost to follow-up at the beginning of the month of July 2011. Very schematically, all is going well for the oem French railway : its activity remains well oriented, its profitability increases more quickly than expected, and the reconciliation with germany’s Siemens (DE:SIEGn) Mobility is always presented under the auspices of the favorable.

This morning, Alstom published its financial statements for the fiscal year 2017/2018, which ended with the month of march. Over the period, the board has increased to 9% in published data, 7.95 billion euros. Without taking into account the changes or effects of scope, the rate is even more impressive : + 10%, which translates to a net acceleration in the year-end since this rate was only 6% for the first three quarters.

This has a lever on the accounts, the adjusted operating profit winning 22% to $ 514 million, or a margin of 6.5% compared to 5.8% a year earlier. And the net income-group share jumped from 64.3% to $ 475 million. The AG will therefore propose a dividend of 0.35 euro per share, an increase of 40%.

Certainly, a decline of orders taken, by essence variables, reduced the amount published in the book of 2 percent to 34.2 billion euros (end of march). But in data organic growth was 4% and the visibility remains high : more than four years of CA.

In short, Alstom has significantly exceeded in 2017/2018 its organic growth target for horizon 2020 5% per year. This relativizes the prudence of the group table, by 2018/2019, on sales of around eight billion euros.

Even better : previously, Alstom had to reach an adjusted operating margin of approximately 7% in 2020. This should materialise sooner than expected as early as 2018/2019, this rate should reach up to 7%’, now believes the management. If, according to UBS, the consensus had anticipated, for the current fiscal year, a turnover of € 8.1 billion, it was only a margin of 6.7%.

In addition, the approximation of Alstom with the division of equipment rail-Siemens, Siemens Mobility, is always presented well and is expected to be finalized by the end of the year (calendar) 2018. We know since yesterday the composition of the board of directors of the future Siemens, Alstom, which will be proposed to shareholders.

Recall that Siemens Mobility will be given to Alstom, which will be Siemens, Alstom, and will continue to be based and listed in France. An operation that promises to be positive for this upcoming group, which will be 50% owned by Siemens.

Recall that in the 1st half-year of 2017/2018, and comparable data, the branch rail Siemens has seen his CA increase of 16% to eur 4.3 billion, with orders up 35% to $ 5.6 billion. Improved 900 basis points, adjusted operating margin was significantly higher than that of Alstom’s : down to 10.7%.

To follow on the agenda Alstom : the AG of 17 July, by which the shareholders shall decide in particular on the merger. Note that for the current shareholders of Alstom, the merger is expected to be accompanied by the payment of two dividends outstanding for a total amount up to eight euros.

EG

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