During the third quarter of 2012/13,Alstom kept a sustained pace of order intake in a still challenging environment

Tue Jan 22, 2013 1:45am EST

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LEVALLOIS-PERRET, France--(Business Wire)--
Regulatory News: 

Over the third quarter 2012/13 (from 1 October to 31 December 2012), Alstom
(Paris:ALO) registered a sustained level of orders at €5.1 billion, up 3%
compared to the same period last year. Transport continued to deliver a very
sound commercial performance with orders at €1.7 billion. Thermal Power received
orders of €1.6 billion during the third quarter with fewer large projects but a
continuous flow of small to medium-sized contracts. Finally orders in Renewable
Power reached €0.6 billion, significantly up compared to the two previous
quarters and Grid registered a solid €1.1 billion of orders. The Group`s sales
pursued their recovery and were up 1% over the third quarter 2012/13. 

For the first nine months of 2012/13 (from 1 April to 31 December 2012),
Alstom`s order intake came up to €17.2 billion, a 14% increase compared to the
first nine months of 2011/12. Orders growth continued to be supported by
emerging markets representing 48% of the total orders at the end of December
2012, as well as by a robust demand in Transport. The Group`s sales reached
€14.7 billion, up 3% compared to the first nine months of 2011/12. 

At €52 billion on 31 December 2012, the backlog represented 30 months of sales. 

Key figures

                                                                                                                             
 Actual figures     2011/12                                   2012/13                        2011/12     2012/13     Var. %  
 (in € million)     Q1         Q2         Q3         Q4       Q1         Q2         Q3       9 months    9 months    Actual  
 Orders received    5,010      5,173      4,894      6,629    6,029      6,100      5,054    15,077      17,183      +14%    
 Sales              4,526      4,863      4,874      5,671    4,777      4,971      4,924    14,263      14,672      +3%     


The reported figures by Sector are presented in Appendix 1. A geographic
breakdown of reported orders and sales is provided in Appendix 2. All figures
mentioned in this release are unaudited.

"In an environment that remains challenging, we achieved a solid third quarter
2012/13, with orders at €5.1 billion, in spite of fewer large projects in
Thermal Power. Demand continues to be active in emerging markets for all
Sectors, whilst Transport booked a large number of contracts in Europe during
the period. The book-to-bill is over 1 for the 9th quarter in a row. Thanks to
our current dynamic commercial activity, we expect order intake to be strong in
the fourth quarter with sales continuing their recovery," said Patrick Kron,
Alstom`s Chairman & Chief Executive Officer. 

Sector Review

Thermal Power

During the third quarter of 2012/13, Thermal Power registered orders of €1,620
million, down 13% compared to the same period last year, due to the lack of
turnkey contracts this quarter. Thermal Power`s commercial performance was
supported by demand for new equipment in emerging countries as well as by
service activity, including retrofit. In particular, the Sector booked three gas
turbines (1 in Jordan and 2 in China) as well as parts for gas turbines in Libya
and a retrofit contract for a South African coal-fired power station. Sales grew
4% at €2,329 million. 

For the first nine months of 2012/13, Thermal Power kept the pace with an order
intake amounting to €6,385 million, down 2% compared to the same period last
year. Sales were at €6,587 million, recording a 5% increase in comparison to
last year. 

Renewable Power

During the third quarter of 2012/13, Renewable Power recorded €616 million of
new contracts, twice the level of orders registered over the same period last
year. The Sector`s order book was mainly fuelled by two hydro projects in
Colombia and Ethiopia, with small orders also registered in both wind and hydro.
Sales amounted to €408 million in the third quarter 2012/13, up 11% compared to
last year over the same period. This increase was mainly due to the booking of
revenue milestones in large hydro projects under execution in Brazil. 

Over the first nine months of 2012/13, Renewable Power`s orders decreased by 8%
to €1,218 million from €1,324 million over the same period last year. The Sector
registered €1,264 million of sales, down 10% compared to last year. 

Grid

During the third quarter of 2012/13, Grid achieved a sound level of orders of
€1,094 million, down 6% from the high level achieved in the third quarter
2011/12 when Alstom booked a large HVDC contract in Sweden. Over the quarter,
the Sector booked a large number of small contracts worldwide. Sales amounted to
€862 million in the third quarter, down 12%. The Sector`s activity has been
affected equally by an unfavourable basis of comparison (mainly a particularly
sustained activity in the third quarter last year for power electronic
businesses in Russia) and by customer-related project delays (mainly in India). 

Over the first nine months of 2012/13, Grid`s orders came up to €3,274 million,
up 8%, whilst sales reached €2,725 million, down 4% compared to the same period
last year. 

Transport

During the third quarter 2012/13, the orders booked by Transport amounted to
€1,724 million, showing another strong quarter in terms of commercial activity.
The main successes included regional trains in Italy and Germany, metro cars in
Brazil, a maintenance contract in Kazakhstan as well as a modernisation contract
in the USA. Sales, at €1,325 million, were up 4% compared to the same period
last year. 

Over the first nine months of 2012/13, Transport`s orders stood at a record
€6,306 million, a 50% increase compared to the same period last year. Sales
reached €4,096 million, up 10% compared to the first nine months 2011/12. 

Key events of the third quarter 2012/13

During the third quarter of fiscal year 2012/13, Alstom continued to build
industrial capabilities in fast growing countries and to strengthen its new
technologies. 

In Kazakhstan, Alstom unveiled the first electric freight locomotive to the
Kazakh railways. Alstom also inaugurated its newly built locomotive plant in
Astana, which is operated by EKZ, a joint venture held by KTZ (50% of the
shares), Alstom and TMH (25% of the shares respectively). The plant will have a
capacity of up to 100 locomotives per year. 

In Brazil, Alstom announced the set-up of its first factory dedicated to the
production of towers for wind turbines in Latin America. The new site will have
an installed capacity of 120 towers per year, which represents around 350 MW.
The plant should start operations in the first half of 2013 with orders already
received to supply the Brazilian market. This new factory will be the second
manufacturing unit for Alstom`s wind power generation infrastructure business in
Latin America. 

Alstom has invested an additional US$40 million in the American company
BrightSource Energy, Inc to reinforce its partnership with the pioneering solar
power company, a leader in the concentrated solar thermal tower technology.
Since its initial investment in 2010, Alstom has progressively increased its
participation and now holds above 20% of the capital. 

Financial situation and Outlook

At the beginning of October, the Group successfully launched a €350 million
share capital increase through an accelerated book building as well as a new
bond issuance of €350 million. These two financing transactions contributed to
maintaining the sound financial structure of the Group. 

With the expected strong orders for the fourth quarter, the Group should show a
solid commercial performance over the current fiscal year. Alstom confirms its
three-year guidance and anticipates a positive free cash flow for the second
half of the current fiscal year. 

***

This press release contains forward-looking statements which are based on
current plans and forecasts of Alstom`s management. Such forward-looking
statements are relevant to the current scope of activity and are by their nature
subject to a number of important risk and uncertainty factors (such as those
described in the documents filed by Alstom with the French AMF) that could cause
actual results to differ from the plans, objectives and expectations expressed
in such forward-looking statements. These such forward-looking statements speak
only as of the date on which they are made, and Alstom undertakes no obligation
to update or revise any of them, whether as a result of new information, future
events or otherwise.

APPENDIX 1 - SECTOR BREAKDOWN BY QUARTER

                                                                                                                                                   
                    2011/12                                   2012/13                        2011/12     2012/13     Var. %                        
 Orders received    Q1         Q2         Q3         Q4       Q1         Q2         Q3       9 months    9 months    Var. Actual       Var. Org.*  
 (in € million)                                                                            
 Thermal Power      2,811      1,839      1,872      2,844    2,499      2,266      1,620    6,522       6,385       -2%               -6%         
 Renewable Power    328        687        309        702      214        388        616      1,324       1,218       -8%               -7%         
 Grid               891        962        1,168      982      1,017      1,163      1,094    3,021       3,274       +8%               +7%         
 Transport          980        1,685      1,545      2,101    2,299      2,283      1,724    4,210       6,306       +50%              +47%        
 Alstom             5,010      5,173      4,894      6,629    6,029      6,100      5,054    15,077      17,183      +14%              +11%        
                                                                                                                                                   
                    2011/12                                   2012/13                        2011/12     2012/13     Var. %                        
 Sales              Q1         Q2         Q3         Q4       Q1         Q2         Q3       9 months    9 months    Var. Actual       Var. Org.*  
 (in € million)                                                                            
 Thermal Power      1,945      2,102      2,247      2,432    2,070      2,188      2,329    6,294       6,587       +5%               +2%         
 Renewable Power    473        564        369        621      389        467        408      1,406       1,264       -10%              -11%        
 Grid               887        957        981        1,188    889        974        862      2,825       2,725       -4%               -5%         
 Transport          1,221      1,240      1,277      1,430    1,429      1,342      1,325    3,738       4,096       +10%              +8%         
 Alstom             4,526      4,863      4,874      5,671    4,777      4,971      4,924    14,263      14,672      +3%               +1%         


(*) Organic are excluding any currency & scope impacts.

APPENDIX 2 - GEOGRAPHIC BREAKDOWN

                                                                                 
 Orders received by destination    2011/12     %           2012/13     %         
 (in € million)                    9 months    Contrib.    9 months    Contrib.  
 Western Europe                    4,135       27%         6,609       38%       
 North America                     1,778       12%         2,046       12%       
 Eastern Europe                    2,696       18%         794         5%        
 South & Central America           896         6%          1,683       10%       
 Africa / Middle East              2,125       14%         2,867       17%       
 Asia / Pacific                    3,447       23%         3,184       18%       
 TOTAL                             15,077      100%        17,183      100%      
                                                                                 
 Sales by destination              2011/12     %           2012/13     %         
 (in € million)                    9 months    Contrib.    9 months    Contrib.  
 Western Europe                    5,255       37%         5,052       34%       
 North America                     1,767       12%         1,848       13%       
 Eastern Europe                    1,109       8%          1,335       9%        
 South & Central America           1,188       8%          1,124       8%        
 Africa / Middle East              1,977       14%         2,200       15%       
 Asia / Pacific                    2,967       21%         3,113       21%       
 TOTAL                             14,263      100%        14,672      100%      


Alstom
Press contacts
Emmanuelle Châtelain, Isabelle Tourancheau, +33 1 41 49 37 38 /39 95
emmanuelle.chatelain@chq.alstom.com, isabelle.tourancheau@chq.alstom.com
or
InvestorRelations
Delphine Brault, +33 1 41 49 26 42
delphine.brault@chq.alstom.com
www.alstom.com

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