Alstom CEO Says Trump Win Could Be Good for Train Makers
November 09 2016 - 6:19AM
Dow Jones News
By Inti Landauro
PARIS--Train maker and Amtrak supplier Alstom SA (ALO.FR) said
Donald Trump's victory in the U.S. presidential race could be good
news for rolling-stock companies in the light of the promises the
Republican candidate made to upgrade the country's
infrastructure.
The French company, best known for its TGV high-speed trains,
secured a 1.8 billion euro ($2.0 billion) contract to supply the
U.S. rail operator in August. Alstom's competitors include Canada's
Bombardier (BBD.A.T) as well as South Korean, Japanese and Chinese
train manufacturers.
"It is early to tell, but Donald Trump had announced huge
investments in infrastructure," Henri Poupart-Lafarge told analysts
in a conference call held on Wednesday shortly after the
confirmation of Mr. Trump's surprise victory.the U.S. election were
made public.
Alstom, now focused on making trains after selling most of its
energy assets to General Electric Co. (GE), said the company
currently doesn't sell much in the U.S. while most of what it does
is manufactured locally, Mr. Poupart-Lafarge said.
Such so-call natural hedging protects Alstom from any gyrations
in the value of the U.S. dollar which some analysts say could prove
to be volatile under a Trump presidency.
By Inti Landauro to inti.landauro@wsj.com
(END) Dow Jones Newswires
November 09, 2016 06:04 ET (11:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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