By Nathan Allen 
 

Shares in Alstom SA (ALO.FR) rose as much as 5% in early trade Wednesday after the French train maker posted better-than-expected first-half earnings.

Net profit for the April 1 to Sept. 30 period was EUR563 million compared with an estimate from Oddo BHF of EUR207 million.

The earnings hike was partly the result of an unexpected EUR245 million gain from the sale of stakes in three joint ventures to General Electric Co. (GE), but the company also benefited from cost cutting and productivity improvements.

Alstom also reported its highest-ever adjusted profit margin at 7.1% and a record order backlog of EUR38.1 billion at the end of September.

At 0851 GMT Alstom was trading 2% higher at EUR38.61, having earlier risen as high as EUR39.85.

Chief Executive Henri Poupart-Lafarge said the company's planned merger with Siemens AG's (SIE.XE) mobility unit is still on track to close in the first half of 2019, despite recent objections from the European Commission.

In October the regulator sent letters to both companies detailing concerns about the effect on competition for rolling stock and signaling systems in Europe.

They have until Jan. 28, 2019, to address the concerns and submit proposals for remedies.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

November 14, 2018 04:19 ET (09:19 GMT)