Alstom sets 2020 targets as it focuses solely on transport

PARIS (Reuters) - French transport group Alstom (ALSO.PA) said on Tuesday it wanted 30 percent of orders to come from newly developed products by 2020, a horizon by which sales are expected to grow by five percent annually.

The company, which sold most of its power equipment business to U.S General Electric (GE.N) last year to focus on the manufacturing of train equipment, will invite investors at one of it plants in Villeurbanne, central France, on Wednesday to present its new strategy.

In a statement released on Tuesday, Alstom said it would devote an additional 300 million euros (234.5 million pounds) in capex over the next three years in order to be "number one or two in all continents."

"Adjusted earning before interest and tax margin should reach around 7 percent by 2020, driven by volume, portfolio mix and results of operational excellence actions," it said.

On Jan. 21, Alstom confirmed its full-year revenue and profit target after posting a 10 percent quarterly sales jump at its rail business.

"By 2020, Alstom expects 100 percent conversion from net income into free cash flow," the group added.

(Reporting by Matthias Blamont; editing by Geert De Clercq)