alstom sa-unspon adr (ALSMY) Key Developments
Alstom and Arabian Bemco to Set Up a Joint Venture to Manufacture Power Generation Equipment for the Middle East
Dec 2 13
Alstom (Paris:ALO) and Arabian Bemco Contracting Co. Ltd. have signed an agreement to create a joint venture (JV) company, Alstom Arabia Power Factory Ltd, which will establish a world-class manufacturing facility in the Kingdom of Saudi Arabia (KSA) for power generation components, primarily heat recovery steam generators (HRSGs) which are used in combined cycle and cogeneration applications to increase thermal cycle efficiency and minimise fuel consumption. In the second phase, the partners envision expanding the scope of the factory to manufacture other power generation equipment. The initial investment will be worth approximately EUR 50 million. This operation reflects Alstom's ongoing commitment to its industrial presence in KSA and offers strong market opportunities across the Middle East. The factory will be located in King Abdullah Economic City, North of Jeddah, and will train and employ more than 500 Saudi nationals.
Alstom To Sell Air Preheaters And Gas Heaters Business
Nov 21 13
Alstom SA (ENXTPA:ALO) has picked The Goldman Sachs Group, Inc. (NYSE:GS) to help it explore a sale of its air preheaters and gas-gas heaters business.
Alstom to Cut 1,300 Jobs Worldwide, Mostly in Europe
Nov 6 13
Alstom announced that it would cut 1,300 jobs worldwide, mostly in Europe, as part of a plan to dramatically cut costs. The company reported that the company's thermal power business and information technology divisions would be chiefly affected due to job cuts.
Alstom Announces Earnings Results for the First Half Ended September 30, 2013; Maintains Earnings Guidance for the Fiscal Year 2014
Nov 6 13
Alstom announced earnings results for the first half ended September 30, 2013. For the first half, the company reported sales of EUR 9,730 million against EUR 9,748 million a year ago. Income from operations was EUR 695 million against EUR 703 million a year ago. Net income was EUR 375 million against EUR 386 million a year ago. Negative free cash flow was EUR 511 million against positive free cash flow of EUR 101 million a year ago. Free cash flow impacted by some project profiles and down payments. The company's net financial debt came to EUR 3,294 million at September 30, 2013 versus EUR 2,871 million at September 30, 2012. CapEx reached EUR 250 million, with several initiatives across sectors.
The company maintains its earnings guidance of a low-single digit sales growth on an organic basis and of a stable operating margin in the fiscal year 2013/14, which should then gradually increase to around 8% over the next two to three years. Free cash flow should be positive year after year over this period. The company expects tax rate at 22%.
Alstom Plans To Sell Transport Division
Nov 6 13
Alstom SA (ENXTPA:ALO) is planning to sell transport division. Patrick Kron Chief Executive of Alstom said, Alstom is looking for a buyer of a 10% to 25% stake in the transport division. "We have no precondition over nationality for our potential partner. We could quite possibly take a partner from a country where we want to develop," he said. Alstom set a target of 1 to €2 billion of disposals through the possible sale of a minority stake in its transport business and the disposal of non-strategic assets. It expected annual cost savings to rise to €1.5 billion ($2.02 billion) by April 2016.