Alstom CEO Sees Positive Effect on Trump's Promises on Infrastructure -- Update

By Inti Landauro

PARIS--Train maker and Amtrak supplier Alstom SA (ALO.FR) considered Donald Trump's victory in the U.S. presidential race could be good news for rolling-stock companies in the light of the promises the Republican candidate made to upgrade the country's infrastructure.

The French company, best known for its TGV high-speed trains, secured a 1.8 billion euro ($2.0 billion) contract to supply the U.S. rail operator in August. Alstom's competitors include Canada's Bombardier (BBD.A.T) as well as South Korean, Japanese and Chinese train manufacturers.

"It is early to tell, but Donald Trump was mentioning huge investments in infrastructure," Henri Poupart-Lafarge told analysts in a conference call held on Wednesday shortly after the confirmation of Mr. Trump's surprise victory.the U.S. election were made public.

Alstom, now focused on making trains after selling most of its energy assets to General Electric Co. (GE), said the company currently doesn't sell much in the U.S. while most of what it does is manufactured locally, Mr. Poupart-Lafarge said.

Such so-call natural hedging protects Alstom from any gyrations in the value of the U.S. dollar which some analysts say could prove to be volatile under a Trump presidency.

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(END) Dow Jones Newswires

November 09, 2016 18:24 ET (23:24 GMT)

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