With or without Siemens, Alstom benefits from a strong market

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Alstom CEO Henri Poupart-Lafarge on board the first hydrogen train of the group at Bremervörde (Lower Saxony, Germany) in September 2018.
Alstom CEO Henri Poupart-Lafarge on board the first hydrogen train of the group at Bremervörde (Lower Saxony, Germany) in September 2018. PATRIK STOLLARZ / AFP

Alstom can live without Siemens, but for how long? In the run-up to the decision of the European Commission on the marriage of the French and German rail groups, which must take place before February 18, the leaders of Alstom published excellent results on Thursday, January 17 for the third quarter of the year, 2018-2019.

Between October and December the order book of the manufacturer of trains, trams, metro & # 39; s and signaling systems increased by 3.4 billion to 39.7 billion. What, according to his leaders "Good visibility of future sales" and four years of work at the Alstom factories around the world.

In the short term, the future of Alstom is not at risk for a global market that grows by 3% per year

For the first nine months of 2018-2019, the activity was 6 billion (+ 18% at constant perimeter and exchange rates). "Alstom continued to achieve strong sales performance this quarter, with a new record in the order book, particularly in services, including the award of the maintenance contract for the Riyadh metro.", in Saudi Arabia, underlines the CEO, Henri Poupart-Lafarge.

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The last quarter was characterized by the delivery of Dubai's first subway, in the United Arab Emirates, the last train from Sydney, Australia, and the first train for the PRASA transport company produced at the factory that the group has just been initiated into South Africa.

Threat of prices

In the short term, the future of Alstom is not at risk for a global market that grows by 3% per year. The group started the construction of the American TGV New York-Boston (2 billion euros), whose trains are manufactured in Hornell (New York), under the Buy American Act. The supply of trains in the suburbs in South Africa (4 billion euros) has begun, just like that of electric locomotives to India. Riyadh, Dubai, Bombay, Cochin have Alstom metro's. And the group still fought for the enormous British HS2 project between London and Scotland, Siemens, the Japanese-Canadian consortium Bombardier-Hitachi and the Spanish CAF.

What about the coming years? After the controversial sale of Alstom's energy division to the American General Electric in 2014, the marriage of its railway department with Siemens Mobility is vital for the long term, some analysts say.