Train maker Alstom’s quarterly sales rise driven by orders in Europe

(Reuters) -French train maker Alstom on Tuesday reported an 8% rise in first-quarter revenue, fuelled by sales in Europe where it also secured most of its contract wins over the quarter.

Alstom, which makes trains and signalling systems for urban and regional rail networks, recorded sales of 4 billion euros ($4.06 billion) in the three months to June 30, compared with 3.70 billion a year earlier.

Europe accounted for 2.41 billion euros, or 60% of sales.

Alstom received orders worth 5.60 billion euros in the quarter, down 13% from last year. Europe was responsible for 70% of those, including a contract for 130 electric trains in Germany announced in May.

The French group had an order backlog of 83.4 billion euros at the end of the period.

Alstom confirmed its financial targets, including sales growth and free cash flow generation for the current fiscal year, but warned it still saw challenges from inflation and the shortage in electronic components.

The company’s stock has lost a fifth of its value this year in the wake of Russia’s invasion of Ukraine and the related steep rise in costs, while supply chains took another hit from the new COVID-19 lockdowns in China.

($1 = 0.9862 euros)

(Reporting by Valentine Baldassari and Alizée Degorce in Gdansk; editing by Milla Nissi)