Alstom Swings to Profit Buoyed by Capital Gains
May 11 2016 - 1:53AM
Dow Jones News
By Inti Landauro
PARIS--French train and rolling stock maker Alstom SA (ALO.FR)
on Wednesday reported a large net profit for its fiscal year 2016
after booking capital gains on assets it sold to General Electric
Co. (GE), lifting it from a year-earlier loss.
Alstom said it made a net profit for the fiscal year ending
March 31 of 3 billion euros ($3.41 billion), compared with a EUR719
million net loss in the same period a year earlier.
Most of the profit came from the capital gains Alstom made on
the sale of a series of assets to GE, the company's Chief Executive
Henri Poupard-Lafarge told reporters.
The company had attributed the year-earlier loss to a $772
million settlement with the Department of Justice to resolve
corruption cases and the write-down of assets in Russia.
Excluding one-time charges and capital gains, Alstom's operating
profit during the fiscal year ending in March rose 23% to EUR366
million, up from EUR298 million last year.
The maker of TGV bullet trains said it booked a record EUR10.64
billion of orders, up over 6% compared with the previous year. Its
backlog rose to EUR30.36 billion at the end of March.
Alstom has focused last year in the train business after selling
its power equipment division, which represented a little more than
50% of its sales, to its U.S. rival GE.
Alstom sold its power equipment making unit to GE for a nominal
price of EUR12.4 billion, but will retain minority stakes in part
of the business worth EUR2.4 billion. Alstom will then pay GE
EUR700 million for its train-signalling business.
Alstom transferred EUR3.2 billion of the sale proceeds to its
shareholders late last year.
-Write to Inti Landauro at inti.landauro@wsj.com
(END) Dow Jones Newswires
May 11, 2016 01:38 ET (05:38 GMT)
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