The following is a summary of the Alstom SA (ALSMY) Q3 2023 Earnings Call Transcript:
Financial Performance:
Alstom SA reported a strong Q3 order intake of €5.5 billion and €13.9 billion year-to-date, particularly from Europe, Australia, and the Middle East.
A steady backlog of €90 billion with improved margins was noted.
Organic sales growth was at 4.6% in Q3 and 7.3% over nine months due to the strong performance from the service system and signaling product lines.
Sales for the year 2023/2024 are anticipated to be €1.7 billion at zero gross margin.
The company expects a negative free cash flow of between €500 million to €750 million for the full financial year.
Business Progress:
Production increased with 3,415 cars produced over nine months compared to less than 3,000 for the same period in the previous year.
Measures are being implemented to improve inventory management and project visibility.
There is a plan to strengthen the balance sheet by €2 billion through inorganic measures, with disposals expected to raise between €500 million and €1 billion.
Significant progress made with deals for the AlUla tram system and the Dominican Republic monorail.
Expect the positive momentum in service and systems to continue into Q4 and later quarters.
Negotiations are ongoing with the UK government regarding manufacturing capabilities in Derby.
Alstom reconfirmed its full-year outlook and mid-term guidance, aiming for zero net debt and an adjusted EBIT margin of around 6% for the full financial year.
More detailed: ALSTOM UNSP ADR EACH REPR 0.10 ORD IR
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