Alstom shares higher after good third quarter

Alstom, the French company that supplies the Luas trams and maintains the network in Dublin, confirmed its full-year revenue and profit target after posting a 10 per cent quarterly sales jump at its rail business.

Alstom also said it had struck additional commercial agreements with GE worth €400 million.

The extra proceeds, flagged late last year, should help the group mitigate the impact of a record $772 million US fine it faces in settlement of bribery allegations.

The US department of justice has required that Alstom, not GE, pay the fine, but Alstom chief Patrick Kron has said the overall negative impact would not be significant, at about 1-2 per cent of the GE deal, thanks to positive adjustments, including fees, GE will pay to use the Alstom brand. – (Reuters)