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Alstom financial statement shows strong market position and includes Bombardier takeover update

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Alstom has released its 2019/2020 financial statement, which revealed the company received €9.9 billion of orders in the year, resulting in an order backlog of €40.9 billion. Sales were €8.2 billion, two per cent up on the previous year despite a slowdown at the end of the period due to coronavirus. Overall margin before interest and taxes was 7.7 per cent, a total of €630 million.

2019/2020 was the first year of the company’s Alstom in Motion strategy (AiM) announced by Alstom in June, which sets a clear ambition to be the leading global innovative player for sustainable and smart mobility by 2025. The group is already progressing on the AiM priorities of:

  1. Growth by offering greater value to customers;
  2. Innovation in smarter and greener mobility solutions;
  3. Efficiency powered by digital;
  4. One Alstom team, agile, inclusive and responsible.

“This fiscal year was the first of our new strategy Alstom in Motion, which was launched last June and is now being deployed throughout the Group,” said Henri Poupart-Lafarge, Alstom chairman and chief executive officer.

“Although considered a stabilisation year, Alstom enjoyed strong commercial momentum in a very dynamic railway market. We won major orders especially in Europe and in Asia-Pacific. In addition, we secured pioneering orders for our green mobility solutions, illustrating the potential of such technologies and the dynamism of the shift to carbon free transportation modes. The continuous improvement in our operational performance demonstrates the Group’s focus on profitable growth.”

Alstom’s planned takeover of Bombardier Transportation is still on track. On 17 February 2020, the company announced that it had signed a Memorandum of Understanding with Bombardier Inc. and Caisse de dépôt et placement du Québec (“CDPQ”) in view of the acquisition of Bombardier Transportation.

Now, Alstom’s unions have indicated they will render their opinion around summer 2020 on the proposed takeover of Bombardier Transportation, according to the “method agreement” reached with management. An EGM vote on the reserved capital increases to CDPQ and Bombardier Inc. and the rights issue should take place no later than October 31, 2020.

Subject to the EGM approval, rights issue will take place between the second semester 2020 and first semester 2021, subject to market conditions, and the reserved capital increases will take place at closing. The syndication of €2.4 billion of Bridge Facilities and a new €1.5 billion Revolving Credit Facility related to the proposed acquisition of Bombardier was completed in April 2020 as planned.

The transaction will also be subject to clearance from relevant regulatory authorities and anti-trust authorities. Closing is expected in the first half of 2021.

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