Alstom notes synergy associated with Bombardier Transportation, and reports annual losses, company news

PARIS (Agefi-Dow Jones) – Railway equipment maker Alstom on Wednesday raised its synergy target for the acquisition of Bombardier Transportation, while the group published adjusted net loss for fiscal 2021-2022 due to the impairment of its stake in Russia’s Transmashholding ». In the second half of this financial year, Alstom also generated positive funds.

Alstom now expects to receive € 400 million in synergies related to the acquisition of Bombardier Transportation for fiscal year 2024-205, which will end in March 2025, followed by € 475 million to € 500 million during fiscal year 2025-2026. Earlier, the group predicted an amount of 400 million euros in 2024-2025 or 2025-2026.

As for its forecast for the financial year ending March 2023, the Group expects to achieve a book value ratio of more than 1, an adjusted operating margin that is higher than in 2021-2022, and a positive free cash flow.

In the medium term, Alstom has reaffirmed its July 2021 targets. The Group expects an average annual growth of 5% between fiscal 2020-2021 and fiscal 2024-2025, an adjusted operating margin of 8% to 10% as of fiscal 2024-2025 and a conversion of adjusted net income to free cash flow of over 80%. It also intends to distribute between 25% and 35% of its adjusted net income in the form of dividends.

Alstom fulfilled all these prospects after publishing losses for the entire 2021-2022 financial year.

In this financial year, which ended last March, the adjusted net loss amounted to 173 million euros. Alstom has written off a depreciation of 441 million euros due to its 20% stake in Russian locomotive and railway equipment supplier Transmashholding. Without this exclusive item, the adjusted net profit would be positive at 268 million euros.

The Group also recorded a net loss (group share) of € 581 million, fined € 403 million for accounting costs associated with the allocation of the purchase price of Bombardier Transport (PPA). A PPA is a post-acquisition accounting transaction that involves allocating the acquisition cost of a target object by measuring its net assets at their fair value and goodwill, ie the difference between the acquisition price and the fair value of that net asset. asset.

Turnover increased by 76% for the year on the reporting base and by 11% on similar indicators to 15.5 billion euros.

Alstom recorded a number of orders of 19.26 billion euros, compared to 9.1 billion euros in the 2020-2021 fiscal year.

Alstom’s adjusted operating profit was € 767 million, or 19%. The corresponding margin was 5% against 7.3% in 2020-2021.

Alstom also generated a negative free cash flow of € 992 million. In the second half of the year alone, this cash flow was positive at € 469 million. The group recorded a payout of 1.46 billion euros in the first six months of the year due to investments needed to stabilize projects inherited from Bombardier Transport.

According to the consensus reached by the company, analysts expected an average of orders of 19.2 billion euros, revenue of 15.45 billion euros, adjusted operating profit of 757 million euros with a margin of 4.9%, and a negative free cash flow. 1.25 billion euros.

Alstom has indicated that it will pay a dividend of 25 eurocents per share for the 2021-2022 fiscal year, the same coupon as for the previous fiscal year.

-Julien Marion, Ajefi-Dow Jones; +33 (0) 1 41 27 47 94; [email protected] ed .: VLV


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May 11, 2022 at 01:49 Eastern Time (05:49 GMT)