Earnings Release • Oct 27, 2020
Earnings Release
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| € million |
2019 | 2020 | Year‐on‐year change |
|---|---|---|---|
| Revenue | 1,936.4 | 1,764,6 | ‐ 8.9% |
| | 844.6 i.e. 43.6% | 690.7 i.e. 39.1% | ‐ 18.2% |
| Of which France | of total revenue | of total revenue | |
| | 1,091.8 i.e. 56.4 % | 1,073.9 i.e. 60.9% | ‐ 1.6% |
| Of which International | of total revenue | of total revenue |
Business decreases by 8.9% at the end of September: ‐18.2% in France and ‐1.6% overseas. On a like‐for‐like basis and constant exchange rate, business decreases by 11.3%: ‐17.9% in France and ‐6.2% outside France. Since January 2020 business has been strongly impacted by the health crisis. Although the activity resumed during the third quarter, it remains very slow.
In the third quarter, business decreases by 18.6%: ‐27.0% in France and ‐12.4% overseas. On a like‐for‐like basis, revenue decreases by 19.4%. Organic growth declines by 26.6% in France and 14.0% overseas. Despite a 6‐point increase as compared to Q2 2020, the business rate in Q3 2020 remains low, i.e. 84% as compared to 92% in Q3 2019.
Business in the Automotive and Civil Aeronautics sectors remains the most impacted whereas Rail/Naval, Life Sciences and Energy (Oil & Gas excepted) withstand the impacts of the health crisis.
Therefore, in the countries with predominant activities in the Automotive and Aeronautics sectors ‐ i.e. France, Germany, Sweden, UK and US ‐ business has significantly decreased in the third quarter. Italy, Switzerland and Asia/Pacific however achieve good results as their activities increase by over 5%.
ALTEN has consolidated its position abroad by completing 4 acquisitions since the beginning of 2020:
ALTEN has meanwhile sold 2 non‐strategic companies in 2020:
Since mid‐March, the health crisis has strongly affected our activities.
The most durably impacted sectors are Automotive & Heavy trucks, Aircraft & associated activities, and Civil Aeronautics.
France, Sweden, Germany, and to a lesser extent the US and the UK, i.e. the countries having predominant activities in the most impacted sectors, are sharply affected by the health crisis.
Although the activity moderately resumed in the third quarter, it should strengthen in the last quarter, however very slowly on account of far‐off prospects of recovery in the Automotive and Aerospace sectors.
As a consequence, we foresee in the second half a similar decrease in business as in the second quarter. In 2020, provided the same business and health conditions, this decrease should average 13%.
For more information: www.alten.com/investisseurs / Contact: ESCAL Consulting Tel: + 33 1 44 94 95 66
As a European Leader in Engineering and Technology Consulting (ETC), ALTEN carries out design and research projects for Technical and IT divisions of major clients in industry, telecoms and services.
ALTEN's stock is listed in compartment A of the Euronext Paris market (ISIN FR000001946); it is part of the SBF 120, the IT CAC 50 index and MIDCAP100, and is eligible for the deferred Settlement Service (SRD).
Paris, October 27th 2020 5:40 pm
Appendix to Press Release:
The ALTEN Group uses alternative performance measures especially selected to follow up on its operational activities. The Group has chosen these measures as they supply additional information allowing the users of periodic financial information to have a comprehensive understanding of the Group's performance. Such alternative performance measures are complementary to IFRS standards.
Growth on a like‐for‐like basis (and constant exchange rate) is calculated excluding the effects of exchange rate variations and the variations of the consolidation scope on a chosen period.
Exchange rate impacts are measured by converting the revenue of the period with the average exchange rate from the previous period.
Scope variation impacts are measured excluding acquisitions, revenue of the period and for transfers, revenue of the previous period, in order to create a scope which is identical to the previous period. This alternative measure enables to identify the real performance of the Group in terms of activity on the chosen period.
This alternative measure enables to identify the real performance of the Group in terms of activity on the chosen period.
| €M | Q3 2019 Revenue |
Q3 2020 Revenue |
% Change |
|---|---|---|---|
| Revenue on a like‐for‐like basis |
1,929.6 | 1,712.0 | ‐11.3% |
| France | 840.8 | 690.7 | ‐17.9% |
| International | 1,088.8 | 1,021.3 | ‐6.2% |
| Scope variation | 6.8 | 55.4 | 2.6% |
| France | 3.8 | ‐ | ‐0.4% |
| International | 3.0 | 55.4 | 4.8% |
| Exchange rate impact | ‐ 2.9 | ‐0.1% | |
| France | ‐ | ‐ | |
| International | ‐ 2.9 | ‐0.3% | |
| Group revenue | 1,936.4 | 1,764.6 | ‐8.9% |
| France | 844.6 | 690.7 | ‐18.2% |
| International | 1,091.8 | 1,073.9 | ‐1.6% |
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