November 14, 2017 / 6:53 AM / a year ago

French group Alstom first-half net profit surges, keeps 2020 financial goals

FILE PHOTO - The logo of Alstom is seen before a news conference to present the company's full year 2016/17 annual results in Saint-Ouen, near Paris, France, May 4, 2017. REUTERS/Gonzalo Fuentes

PARIS (Reuters) - French manufacturing group Alstom (ALSO.PA), which has agreed to merge its rail operations with Germany’s Siemens (SIEGn.DE), reported a surge in first-half net profit and kept its 2020 financial targets.

Interim net profit at Alstom, which makes trains and other transport and infrastructure products, rose 66.4 percent from a year ago to 213 million euros (189.73 million pounds), with turnover progressing 5 percent from last year.

Alstom, in which French conglomerate Bouygues (BOUY.PA) owns a stake, maintained its 2020 targets. These goals include sales growing organically by 5 percent per year by 2020, and for Alstom to have an adjusted EBIT (earnings before interest and tax) margin of around 7 percent by 2020.

In September, Siemens and Alstom agreed to merge their rail operations, creating a European champion to better withstand the international advance of China’s state-owned CRRC Corp Ltd (601766.SS).

Reporting by Sudip Kar-Gupta; Editing by Subhranshu Sahu

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