French power equipment major Alstom SA today reported a 62 per cent decline in profit at €462 million for the year ended March 2011, dragged down by charges related to restructuring of its power business.
In the year–ago period, the firm had a profit of €1.22 billion.
“The net result (profit) decreased to €462 million, due to the adverse impact of non–recurring charges.
At €19.1 billion, orders were up from the low level of last year,” Alstom said in a statement.
Power grid biz
The bottom line was hit by the buyout of power grid business from Areva in June last year as well as cost-saving efforts.
However, the company's sales climbed to €20.92 billion for the year ended March from €19.65 billion in the same period a year ago.
“The recovery in orders intake has been driven by numerous successes in emerging markets where demand is expected to continue to grow, while activity in the developed economies remains sluggish,” the Alstom Chairman and CEO, Mr Patrick Kron, said.
The company has a good presence in India. During the year ended March, Alstom initiated several partnerships in India, Russia and China.
“Alstom spent over €500 million in capital expenditures to upgrade its existing footprint and to launch new investments in the BRIC countries,” it said.