Alstom : Net Profit Jumped 60% in Fiscal Year 2017 Despite Lower Orders
By Nathan Allen
France's Alstom said Wednesday that net profit for its fiscal year rose more than 60% despite sharply lower orders.
For the fiscal year ended March 31, Alstom said its profit was 475 million euros ($564.5 million) compared with EUR289 million a year earlier.
Alstom said the improvement in profitability was the result of volume increase, portfolio mix and ongoing initiatives for operational excellence.
Sales were up 9% on a reported basis at EUR7.95 billion, while orders dropped 28% to EUR7.18 billion, the company said.
Alstom declared a dividend of EUR0.35 a share, compared with EUR0.25 a year earlier.
For the 2018-2019 fiscal year, Alstom said it expects sales to reach around EUR8 billion and its adjusted margin on earnings before interest and taxes to reach up to 7%.
In separate statements, Alstom and Siemens said that all 11 board members for the future Siemens-Alstom merged entity have been proposed.
Siemens has proposed six members, while Alstom has proposed its current chief executive, Henri Poupart-Lafarge, to serve as director and CEO of the new company, as well as four independent board members, the companies said.
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