What face the immediate future with serenity

The fate of companies is often also thoughtfully than that of men. And do not pay in the poetic nostalgia that, such as Aragon, to say that "nothing is never acquired human, neither its strength nor its weakness". The Alstom case is exemplary: at the gates of hell there is less than five years, society today seems to knock those of industrial paradise. At the beginning of the year, contracts raining down from the four corners of the world, turnover is growing more 20 on the nine first months of its fiscal year, the order book was inflated by nearly 40 and is now almost two years and a half of sales. At the same time, operational profitability largely climbs beyond 7 of net sales. What face the immediate future with serenity.

When he arrived at the controls in 2003, the CEO, Patrick Kron, found a company posting losses, a giant debt and of the crucial problems of liquidity. This was due to the combination of three factors: a strong external growth, an industrial accident and the degradation of the environment. From its introduction on the stock exchange in 1998, the group, ten years ago by the merger of the French with its British competitor GEC, developed overdrive to catch its competitors always, German Siemens and GE American. He notably acquired equipment (boilers, turbines) energy of ABB in 1999 and the rail activity of Fiat a year later. A strategy indispensable but that costs once the purchase nearly EUR 4.5 billion in four years and once the integration of teams.

At the same time, the company had to wipe a major industrial accident, defects on large gas turbine inherited from ABB, and a situation that is returned as a pancake. The end of the 1990s has been marked in the sector of energy by record gas turbine orders in the United States. This "gas bubble" burst with the attacks of September 11, 2001 and then the resounding failure of Enron in 2002. And as a misfortune is never alone, is, also, transport sector entered in full doldrums at the same time, while the bankruptcy of a large cruise ship operator has undermined the shipyard activity. As what the life of a diversified conglomerate is not so quiet that a specialist and its sensitivity to the situation remains strong despite its diversification.

The strategy adopted by Patrick Kron has therefore been relatively stress early: restructuring, on the one hand, to integrate all of these recent activities, forced March and disposals of assets, on the other, to identify financial means. In fact, the refocusing of energy and transportation Group had been largely embarked. Left to separate the naval too cyclical, too small, and, reluctantly, some jewelry such as transmission and distribution division and industrial turbines. The restructuring of the industrial tool (and managerial with the renewal of 80 of management teams) was accompanied by a streamlining at the level of the commercial tool. So that when the economy picked up only, as of 2004, the performance of the group are distributed on the rise, as a buoy which dates back to the surface.

Because the restart was as strong as the slowdown. Demand for electric energy is closely correlated with economic growth. As a result, the explosion of the economy China and other emerging countries, such as the India and now the Russia, accompanied by very high demand in production equipment. China opens a new power plant (mainly coal) each week. As, the price of raw materials and environmental constraints lead to energy savings, the pressure is high for the renewal or renovation of old installations. ALSTOM is well-positioned in this area: one-quarter of global facilities are based on its technology. In addition, it is leader in coal-fired plants that constitute the majority of the new equipment currently. And even in Europe, the shortage of electricity threat and to renew the Park, either in gas or even nuclear. Finally, as if the combination of misfortunes of 2002 was to repair itself by alignment perfect great joys, the situation in transportation has never been as good. As well in the city, with there still the environmental constraints that relaunched the trams, on long distances, with the gradual conversion of all countries, energy prices requires, to the charms of the high-speed train.

To continue on this nice slope and attempt to catch up with or surpass its competitors in terms of profitability, Alstom first continues its offensive on costs, strengthening the modularity of its equipment and practicing widely the subcontracting. The firm now buys out 50 of what it sells to the client. It strengthens its coverage of Asia in the field of energy, and finally it tries to develop its offering of services and benefits "turnkey". Normal, services to the energy of Alstom division displays a return of 16 compared to less than 6 for equipment.

Now on the rails, the company must now prepare for the future in a trade that remains what it said highly cyclical, even if the distribution of the commands in the world is more balanced ten years ago. A US recession will necessarily affect its Asian suppliers, to the first rank of which, the Indians and Chinese, but also Europeans who suddenly slow down their investments. It must also be wary of the risk of execution, especially with a strong level of subcontracting. Finally, it must take into account, inter alia, the environmental constraints that in ten years will disrupt the market for the production of electricity. It is for these reasons that she would like both to get their hands on his compatriot Areva. To expand its offer, no longer a simple subcontractor for the construction of nuclear power plants, expanding its surface to weigh commercially and politically in the negotiations and to prepare for the next day where the constraints on the climate will make the inevitable nuclear.

But as recent history has amply demonstrated, the size is also full of pitfalls and the folly of acquisitions can lead to disaster. "When he believes shake his happiness he the shreds." "Life is a strange and painful divorce", said Aragon.