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Alstom annual profit slumps 62% to 462 mn euros

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Press Trust of India Paris/New Delhi
Last Updated : Jan 20 2013 | 9:33 PM IST

French power equipment major Alstom SA today reported a 62% decline in profit at 462 million euros for the year ended March 2011, dragged down by charges related to restructuring of its power business.

In the year-ago period, the firm had a profit of 1.22 billion euro.

"The net result (profit) decreased to 462 million euros, due to the adverse impact of non-recurring charges. At 19.1 billion euros, orders were up from the low level of last year," Alstom said in a statement.

The bottom line was hit by the buyout of power grid business from Areva in June last year as well as cost-saving efforts.

However, the company's sales climbed to 20.92 billion euros for the year ended March from 19.65 billion euros in the same period an year ago.

"The recovery in orders intake has been driven by numerous successes in emerging markets where demand is expected to continue to grow, while activity in the developed economies remains sluggish," Alstom Chairman and CEO Patrick Kron said.

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The company has a good presence in India. During the year ended March, Alstom initiated several partnerships in India, Russia and China.

"Alstom spent over 500 million euros in capital expenditures to upgrade its existing footprint and to launch new investments in the BRIC countries," it said.

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First Published: May 04 2011 | 6:01 PM IST

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