UK woes hit Alstom profits
Continuing problems with train deliveries in the UK during the financial year ended March 31 2002 slashed Alstom Transport's operating profit to €101m, a reduction of 62% compared with the previous year. Operating margin fell from 6·0% to 2·3%. According to the company, 'the major negative impact on operating income was from the UK train contracts'.
Orders received totalled €6154m, an increase of 11% over the previous financial year. However, this included several large orders received by UK track maintenance company GTRM which was sold in September 2001. On a comparable basis order growth was 4%. Europe remains Transport's biggest market, representing 71% of the total. Demand for signalling and related systems more than doubled. Sales barely changed at €4413m, up just €13m. Slower deliveries of UK trains were offset by increases in France and eastern Europe. Excluding the UK, sales in Europe increased by 25%.
- Alstom has signed a memorandum of understanding with two Japanese firms to carry out joint studies into the feasibility of maglev technology for transit applications.