Alstom expects fast recovery of rail market after corona crisis
The COVID-19 pandemic has become a true challenge to the rail market. Some manufacturers were even forced to temporarily close their facilities. Meanwhile, French rolling stock manufacturer Alstom hopes for better, especially in 2022.
The 2019/20 fiscal year was profitable to Alstom that reported 446 million euros of net income. However, the company forecasts that the current year will be difficult in terms of orders and sales. Due to the Covid-19 crisis, Alstom’s Board of Directors decided not to propose a dividend distribution at the next Shareholders’ meeting on July 8. The further situation will depend on the duration of restrictions and the intensity of the economic downturn.
“After the current crisis, the Group expects a fast recovery of the rail market, sustained by strong fundamentals and the increasing demand for sustainable mobility,” the French manufacturer stated in its annual report. In this context, the objective of a 5 per cent average annual growth rate over the period 2019/20-2022/23 should be slightly impacted by the temporary slowdown of tender activity, yet the 2022/23 objectives of 9 per cent an EBIT margin and of a conversion from net income to free cash flow above 80 per cent are confirmed.