Enviado: 31/5/2005 9:28UPDATE 3-Alstom narrows loss, wants to go it alone
Tue May 31, 2005 09:23 AM BST
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By Louise Knowles
PARIS, May 31 (Reuters) - French heavy engineering firm Alstom posted a narrower full-year loss on Tuesday and reiterated its target of returning to profitability in 2005/06 as a recovery plan began to bear fruit.
Almost a year after it was saved from collapse by a state-backed bailout, Alstom reported a full-year net loss of 860 million euros ($1.08 billion) for the 12 months to March 31, compared with a loss of 1.84 billion euros a year earlier.
Shares in the maker of France's TGV high-speed trains jumped as much as 7.2 percent to 0.74 euros, though the trading range was just 4 euro cents. Percentage moves are exaggerated by its status as a penny stock, having been below 1 euro for a year.
"The results we are presenting clearly demonstrate the ongoing recovery of Alstom, and show the fruits of the very extensive efforts launched over the past two years," Chairman Patrick Kron told a conference call held to discuss the results.
The maker of trains, gas turbines and cruise ships reiterated its targets for an operating margin of 6 percent and a return to profitability in 2005/06. It said it was also targeting positive free cash flow and continuing debt reduction.
Kron added that Alstom planned to further improve its operating margin by between 1 and 2 percent over the subsequent two years, arriving pat between 7 and 8 percent by March 2008.
Eleven analysts polled by Reuters had on average expected Alstom to post a net loss of 596 million euros.
"Alstom's results published this morning are of excellent quality except for net loss which is not yet... a pertinent indicator for the group," ETC Pollak analysts said in a note, maintaining their "buy" recommendation on the stock.
NO STRATEGIC DISCUSSIONS
Kron said he was confident Alstom could achieve its recovery alone, without the help of partners, and was not currently in talks with any companies.
"Alstom is recovering and is valuable as a stand-alone company. We don't need anyone to help us in our recovery," he said.
"If Alstom one day wants to make strategic moves, these will only be done on their own merits," he added.
Under the terms of a multi-billion euro rescue plan, agreed by the EU last year, Alstom pledged to form "strategic partnerships" with companies not controlled by the French state.
Alstom made an operating profit of 550 million euros, up from 168 million on a comparable basis in 2003/04, on sales down 4 percent on a comparable basis to 13.6 billion euros.
This yielded an operating margin of 4 percent, up from 1.2 percent a year earlier.
The analysts polled by Reuters had on average forecast operating profit of 527 million euros and sales of 13.6 billion euros.
New orders stood at 15.8 billion euros, up 15 percent on a comparable basis, while the firm's negative free cash flow stood at 170 million euros, versus the 1.007 billion euro cash outflow it reported in 2003/04.
Alstom said its net debt had fallen to 1.4 billion euros from 3.7 billion euros a year earlier, helped by asset disposals, capital increases and the refinancing of some of its debt.
Tue May 31, 2005 09:23 AM BST
Printer Friendly | Email Article | RSS
(Adds details, share price)
By Louise Knowles
PARIS, May 31 (Reuters) - French heavy engineering firm Alstom posted a narrower full-year loss on Tuesday and reiterated its target of returning to profitability in 2005/06 as a recovery plan began to bear fruit.
Almost a year after it was saved from collapse by a state-backed bailout, Alstom reported a full-year net loss of 860 million euros ($1.08 billion) for the 12 months to March 31, compared with a loss of 1.84 billion euros a year earlier.
Shares in the maker of France's TGV high-speed trains jumped as much as 7.2 percent to 0.74 euros, though the trading range was just 4 euro cents. Percentage moves are exaggerated by its status as a penny stock, having been below 1 euro for a year.
"The results we are presenting clearly demonstrate the ongoing recovery of Alstom, and show the fruits of the very extensive efforts launched over the past two years," Chairman Patrick Kron told a conference call held to discuss the results.
The maker of trains, gas turbines and cruise ships reiterated its targets for an operating margin of 6 percent and a return to profitability in 2005/06. It said it was also targeting positive free cash flow and continuing debt reduction.
Kron added that Alstom planned to further improve its operating margin by between 1 and 2 percent over the subsequent two years, arriving pat between 7 and 8 percent by March 2008.
Eleven analysts polled by Reuters had on average expected Alstom to post a net loss of 596 million euros.
"Alstom's results published this morning are of excellent quality except for net loss which is not yet... a pertinent indicator for the group," ETC Pollak analysts said in a note, maintaining their "buy" recommendation on the stock.
NO STRATEGIC DISCUSSIONS
Kron said he was confident Alstom could achieve its recovery alone, without the help of partners, and was not currently in talks with any companies.
"Alstom is recovering and is valuable as a stand-alone company. We don't need anyone to help us in our recovery," he said.
"If Alstom one day wants to make strategic moves, these will only be done on their own merits," he added.
Under the terms of a multi-billion euro rescue plan, agreed by the EU last year, Alstom pledged to form "strategic partnerships" with companies not controlled by the French state.
Alstom made an operating profit of 550 million euros, up from 168 million on a comparable basis in 2003/04, on sales down 4 percent on a comparable basis to 13.6 billion euros.
This yielded an operating margin of 4 percent, up from 1.2 percent a year earlier.
The analysts polled by Reuters had on average forecast operating profit of 527 million euros and sales of 13.6 billion euros.
New orders stood at 15.8 billion euros, up 15 percent on a comparable basis, while the firm's negative free cash flow stood at 170 million euros, versus the 1.007 billion euro cash outflow it reported in 2003/04.
Alstom said its net debt had fallen to 1.4 billion euros from 3.7 billion euros a year earlier, helped by asset disposals, capital increases and the refinancing of some of its debt.
