Alstom confirms its annual targets and still plans to raise capital

PARIS (Agefi-Dow Jones) – Rail equipment maker Alstom on Wednesday revealed performance indicators for the third quarter of its staggered financial year, reaffirmed its outlook for the current financial year and indicated it had started to introduce 2 billion euros. debt reduction plan presented in November to strengthen its financial structure and maintain its investment grade rating.

Alstom has thus confirmed its plan to sell assets in the amount of 500 million to 1 billion euros and cancel around 1,500 positions in central functions. The group also reiterated that if these measures were not sufficient to achieve its debt reduction target, it would launch a capital increase, the amount of which has yet to be determined.

The group will provide further details on the debt reduction plan by May 2024 at the latest.

In the third quarter, which ended at the end of December, the group achieved a turnover of 4.3 billion euros, an increase of 2.6% on a published basis and 4.6% on an organic basis, i.e. on perimeter and constant changes.

Order intake reached 5.5 billion euros in the third quarter, compared to 5.2 billion euros in the third quarter of 2022-2023.

“Alstom recorded solid order intake in the third quarter thanks to the positive dynamics of the services and systems market,” CEO Henri Poupart-Lafarge said in a press release. “We are fully committed to the operational action plan aimed at generating positive cash flows in the second half of the year, particularly through improving production efficiency and working capital requirements,” he added.

Alstom confirmed its targets for organic revenue growth above 5% and an adjusted operating margin of around 6% for the financial year ending March 2024. The order-to-order turnover ratio is expected to be above 1 at all times.

Alstom also confirmed its forecast for cash flows, a closely watched indicator by the market, which should be between €500m and €750m negative over the full current financial year, which ends at the end of March 2024.

-Pierre-Jean Lepagnot, Agefi-Dow Jones +33 (0)1 41 27 47 95; ed: VLV


Agefi-Dow Jones Financial Intelligence

Dow Jones Newswires

January 24, 2024 01:53 ET (06:53 GMT)

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