The company’s operating income reached E957 million, up 40% over the previous year. In addition, Alstom recorded net profit of E448 million, up 152% over the previous year and a strong free cash flow making the company debt free in March 2007.
According to Alstom, while its power systems division saw a 65% rise in received orders, its power service arm saw a 22% rise. Meanwhile, the power systems arm saw a 20% increase in sales, while the power service division saw an 18% increase.
Alstom said that the group benefited from its good positioning on a sound power market. The company’s power systems arm booked 20 gas turbines during fiscal 2006, as well as three major coal power plants. The unit also received a key order for the conventional island of the new EPR nuclear power plant in France.
In the same period, Alstom power service signed several major operation and maintenance contracts, as well as agreements for various upgrades of plants, gas turbines, steam turbines and boilers, notably in Europe and the US.
The company supported its fiscal 2006 performance with a 26% increase in research and development expenses and a 35% increase in capital expenditures to support the future growth of the company.
Patrick Kron, Alstom’s chairman and CEO, said: Over the coming period, Alstom will continue to combine growth, both organically and through targeted acquisitions, and performance improvement. In fiscal year 2007/08, the group should experience a double-digit growth of its sales on a comparable basis while the operating margin target of 7% should be exceeded.
