Alstom

Alstom (originally Alsthom ) is a French industry group present in two great trades: the Electrical production (approximately 2/3 of the activity Alstom with the sectors Power Systems and Power Service) and the railway construction (approximately 1/3 of the activity of the group for Alstom Transport), and often n°1 world on certain specialized sectors. Its offer includes at the same time the systems, the equipment and the services.

The activity of naval construction (Queen Mary 2 for example) was yielded in 2006.

History

In the Alsthom beginning, contraction of “ Als ace” and of “ Thom its” was the result of the fusion, carried out in 1928, of part of the SACM (Alsatian Société of mechanical engineering with Mulhouse then with Belfort), specialist in the construction of Locomotive S, and French Compagnie Thomson-Houston, Franco-American company specialist in the equipment of electric traction and electromechanical construction. Auguste Detœuf will be the first managing director.

Recalls:

1922 : Creation of the CFTH (French Company Thomson-Houston),
1928: Creation of ALSTHOM electromechanical company of construction (French Company Thomson-Houston + Alsatian of Mechanical engineering)
1958: Arrival with the head office of the ALSTHOM (seat: Which occurred Kléber with Paris) of Mr. Glasser which inaugurates a new era and of new methods of direction with internal reorganizations.
1965 : Creation of three subsidiary companies, resulting from participation of the ALSTHOM and CGE, being distributed different manufacture, ALSTHOM-SAVOISIENNE (transformer and electric machine), DELLE-ALSTHOM (equipment average tensions), UNELEC (equipment low tensions).

In 1969, the general Company of electricity (C.G.E), which had absorbed Alcatel in 1966, becomes the majority shareholder of Alsthom; this takeover is confirmed in 1976 after fusion with the Building sites of the Atlantic.

Franco-British company

The June 22nd 1989, Alsthom amalgamates with branch GEC Power Systems of the British group The General Electric Company and thus becomes under the name of Gec Alsthom a Franco-British Coentreprise equal, joint venture of GEC and Alcatel Alsthom.

Thereafter, the two head offices chose to be centred on their basic trades, the electronic of defense for GEC (fame Marconi Plc in 1999) and the Télécommunication S for Alcatel Alstom, become meanwhile Alcatel, and decided to sell out of purse the majority (52%) of the capital of GEC Alsthom, by preserving each one 24%.

It was the largest operation of setting out of purse of a European company, apart from privatizations. It gained a great success in a climate of stock exchange euphoria. The new business, thus independent since 1998, took the name of Alstom, without H, easier to pronounce in all the countries.

In 1999, Alstom creates a joint venture with ABB, named ABB Alstom Power, in the field of the systems of production of energy, then in 2000 the totality of the shares acquires some.

In 2001, Alcatel and GEC yield their shares (24% each one) in Alstom.

Weakened at the time of its setting in purse by the equities reduced by a Dividend exceptional versed to its preceding shareholders (Marconi 230 M€, Alcatel 230 M€), then penalized by the difficulties of its gas turbines of great power GT24/26, inherited ABB, the group undergoes a financial serious attack in 2003 little time after the replacement of sound general President-director. This crisis, worsened by the difficulties of delivery of the banking guarantees, is overcome in less than two years in particular thanks to two capital growths, the intervention of the State (finally authorized in 2004 by the European commission after a difficult negotiation with the French government, implying mainly the Minister for the Economy, Finances and the Industry of the time, Nicolas Sarkozy) and the implementation of an important program of transfers.

Concentration of the industry of energy

January 9th, 2004, Alstom thus yields to Areva its activity transmission and distribution for 913 M€.

End 2005, Alstom yields to Barclays Private Equity its activity Power Conversion (electronic of power), which will take the name of Converteam in April 2006.

January 4th, 2006, Alstom decides to separate its shipyards, the Chantiers of the Atlantic and Leroux Naval, with the profit of the Norwegian specialist Aker Yards, this transaction having been finalized on May 31st, 2006. The common company made up with Bouygues in the hydraulic field is operational since November 2006.

Concentration of railway industry

In 1994, the company buys 51% of the actions of the German railway manufacturer Linke-Hoffmann-Busch (LHB), of Salzgitter, its parent company Preussag. The June 13rd 1997, Alsthom buys the remainder 49% of the action of LHB, which appears from now on like Alstom LHB .

In 1998, Alsthom buys with the Famille DE DIETRICH more of two thirds of the actions of DE DIETRICH Ferroviaire located at Reichshoffen in Alsace, which gives rise to Alstom DDF .

In July 2000, Alstom repurchases the Italian company FIAT Ferroviaria, originator and manufacturer of the Pendolino, pendular train ETR 450, ETR 460, and ETR 500 of the Italian railroads, and origin of the S220 oars developped at the point by the Rautaruukki-Transtech company and used in Finland.

general President-directors

Alsthom :

Albert Pestche: chair September 1928 September 1933
Ernest Mercier: chair September 1933 December 1940
Auguste Detœuf: managing director, then vice-president of September 1928 with December 1940
Pierre Bourhis: December 1940 at June 1958
Georges Glasser: June 1958 at September 1975
Roger Schulz: September 1975 at September 1976
Pierre Loygue: September 1976 at April 1979
Roger Schulz: April 1979 at June 1981
Jean-Pierre Desgeorges: June 1981 at June 1989

GEC Alsthom :

Jean-Pierre Desgeorges: chairman and CEO of June 1989 at March 1991, then chairman of March 1991 with January 1995
Pierre Bilger: CEO of March 1991 with January 1995, then chairman and CEO of January 1995 to June 1998

Alstom :

Pierre Bilger: general president-director of June 1998 to January 2003, then chairman of the board of January 2003 to March 2003
Patrick Kron: managing director of January 2003 to March 2003, then general president-director since March 2003

Activities

The Alstom group counts two trades, transport and energy, and three sector: Alstom Power Systems (construction of powerplants), Alstom Power Service (service near the owners of powerplants) and Alstom Transport (equipment and services of rail-bound transport). Its Turnover, 13,5 billion euros in 2005 - 2006, is carried out with nearly 90% out of France. The group employs approximately 65.000 people in 70 countries. Certain products are known of all: TGV, Queen Mary 2 (activity marinades henceforth sold), others, more discrete, is also innovating (APS).

The group asserts positions of world number 1 in:

the Powerplants turn-key
the Turbine S and hydroelectric Alternator S
service for the companies of electricity
the systems Antipollution for the powerplants, in particular with coal
trains with very high speed, Trains at high speed, pendular Trains
the Suburban trains regional and
systems of light vehicles on rail and the Tram S
the railway services, indication and systems.

Alstom is signatory of the Pacte SME.

Stock exchange data

Shareholding

At June 26th, 2006: floating 75,24%, Bouygues 25,1% (April 2006), employees 1,5%.

End April 2006, Alstom and Bouygues indeed announced the recovery by this last on behalf of the State, this transaction having been finalized on June 26th, 2006 after authorization of the European commission.

July 31st, 2006, Alstom reinstates CAC 40, left in April 2002.

Financial results

The countable year of Alstom court of April 1st to the March 31st of the following year.

In standards IFRS starting from 2004 -05

Notes and references of the article

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