Alstom Profits Up
Monday, November 13, 2006
Alstom has said that record orders in the energy sector had boosted its recovery, two and a half years after the group came close to collapse.
Net profit in the first half of its financial year shot to 227 million euros (292 million dollars), a leap of 67 percent from the figure for the same period last year, with energy activities providing the brightest spots in Asia, Europe and the United States.
Operating profit in the period, which runs April to Septmber, rose by 27 percent to 413 million euros, while sales increased by eight percent to 6.608 billion euros, the company said.
The overall Alstom group came close to bankruptcy in 2004 and was the subject of a rescue plan orchestrated by the French state.
Alstom received more than 2.0 billion euros in state aid coupled with assistance from creditor banks, but the French government and the company were obliged to accept conditions imposed by EU competition authorities before proceeding.
The group has divested most of its loss-making shipbuilding activities and focused on the energy and transportation sectors.