Alstom CEO Sees Positive Effect on Trump's Promises on Infrastructure -- Update
November 09 2016 - 6:39PM
Dow Jones News
By Inti Landauro
PARIS--Train maker and Amtrak supplier Alstom SA (ALO.FR)
considered 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 was mentioning 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.
Wrtie to Inti Landauro to inti.landauro@wsj.com
(END) Dow Jones Newswires
November 09, 2016 18:24 ET (23:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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