Alstom's renewables revenue drops 10% in fiscal Q1

Jul 23, 2014 - French group Alstom SA (EPA:ALO) said today its renewable energy operations have experienced a 10% decline in organic sales to EUR 340 million (USD 458m) during the first quarter of its fiscal 2014/15.

The decrease in sales is blamed on temporary delays in wind sales recognition in Brazil, Alstom explained.

Order intake for the first fiscal quarter, which runs from April 1 to June 30, rose by 29% to EUR 682 million thanks to notable orders for onshore wind projects in Brazil. Speaking of big orders, just a few days ago Alstom bagged a wind turbine order worth some EUR 320 million for Renova Energia’s (BVMF:RNEW11) 355.5-MW Umburanas project in Brazil.

Alstom’s thermal, renewables and grid activities are in the process of being acquired by US conglomerate General Electric (NYSE:GE) after the board of the French group approved GE’s offer during the quarter. Commenting on today’s results, Alstom’s chairman and CEO, Patrick Kron, said the company will schedule a meeting by the end of the year for its stockholders to cast their votes on the planned transaction, which has an enterprise value of EUR 11.4 billion.

GE’s proposal envisages the creation of 50/50 joint ventures between the two companies in the areas of grid and renewable power. The green energy JV will comprise Alstom’s offshore wind and hydropower activities. GE and Alstom will also set up another equally-owned venture focusing on nuclear energy and steam turbines.

(EUR 1.0 = USD 1.347)

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