Alstom RE orders up, sales dip

Power equipment group Alstom grew orders in its renewables division in the last quarter, the company said today as it prepared to transfer most of its energy assets to US giant GE.

Alstom’s renewables unit took €682m ($918m) of orders between April and June – the French company’s financial first quarter – up 29% compared to the same period last year helped by big wind equipment orders from Brazil.

Alstom bagged two wind turbine orders in Brazil, with power generator Tractebel Energia for a 97.2MW project and the 355.5MW Umburanas wind project with Renova Energia.

However, sales at the renewables division fell 10% to €340m due to delays in recognising previous wind sales to Brazil, the company said.

Alstom’s grid business also reported higher orders but a 5% drop in sales.

Total group orders doubled in the quarter, mainly due to a €4bn deal its Transport unit booked in South Africa.

Alstom spent most of the quarter in question at the centre of the battle to acquire its energy assets between GE and a rival bid led by Siemens, with the French group eventually settling on the former’s $17bn offer.

CEO Patrick Kron said Alstom has started the processes necessary to finalise the GE deal, and expects to call a shareholders’ meeting by the end of the year to seek approval for the sale, which is due to complete in 2015.