Step by step improvements in company performance is the goal for Alstom's power businesses after a difficult past few years. But it is showing strong signs of bouncing back. When you've reached the bottom, the good news is there's only one direction to go. After a very shaky 2003/04, Alstom has undergone a reorganization and the 'green shoots of recovery' can be seen. In figures released for year ending March 2005, overall company losses had been more than halved from the previous year. A small victory perhaps but one step at a time. According to company objectives, the next step up is to achieve a 6 per cent operating margin in 2005/06 leading a return to profitability. Cost savings and recovery in the Power businesses will play a significant role in achieving that goal. In its Power Turbo Systems and Environment divisions the aim is an operating margin of 3 per cent in this fiscal year. The figure for 2004/05 was -0.8 per cent. Power Service will look to steady its margin above 15 per cent, as for the previous fiscal year. Indeed, it is this industry that the company sees strong growth.
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