Alstom generates strong Q3 orders boosted on emerging markets

ENGINEERING group Alstom, which employs more than 5,000 people in the Midlands, has enjoyed one of its most competitive periods with strong showings across both its power generation and transport operations.

The group, headquartered in Paris, said orders received in the period between October and December last year were at their highest since the first quarter of 2009/10 on a comparable basis.

Alstom has more than 30 UK locations focussed on engineering, service, research and development (R&D) and training operations for the power generation, rail transport infrastructure and electricity transmission industries. Of its 6,500 UK-based employees over 5,000 are located within the Midlands region, operating out of key sites in Stafford, Rugby, and Ashby-de-la-Zouch.

Key projects include the supply and maintenance of Alstom’s Pendolino high speed trains for Angel Trains – operated by Virgin Trains, supply and maintenance of the fleets of London Underground trains on the Northern and Jubilee lines, the design, engineering and construction of 75% of the UK’s new generation of gas fired power stations and lead partner for National Grid’s South East Electricity Alliance, which includes London and the surrounding area.

At £4.7bn (€5.5bn), the order books benefited from a strong demand in emerging global markets, which represented 60% of the total contracts won by the group.

With orders above £2.36bn (€2.8bn) and £1.35bn (€1.6bn) respectively, Alstom’s global Power and Transport sectors recorded marked increases over recent quarters, while its global Grid sector business booked a solid £840m (€1bn) of orders.

During the first nine months of 2010/11 (from April 1, 2010 to December 31, 2010), including £2.02bn (€2.4bn) in Grid (consolidated from June 1, 2010), Alstom recorded an order intake of £10.52bn (€12.5bn), a rise of 10% on the same period last year.

The group’s sales reached £13.2bn (€15.7bn), with £2.27bn (€2.7bn) from Grid, up by 9% compared to the first nine months of 2009/10.

Patrick Kron, Alstom chief executive, said: “During the third quarter of 2010/11, on the back of solid demand in the emerging countries, Alstom achieved the best quarterly level of order intake since July 2009, delivering a book-to-bill ratio above 1 for the first time over the last two years.

“This commercial improvement should gain momentum in the fourth quarter, with order intake expected to show a new increase. Our strengthened presence in the fast growing markets, our leading technologies and our recognised service capabilities are strong assets for the Group in its current competitive environment.”