Alstom has issued its second profit warning since April, cutting forecasts for profit, cash flow and sales. The French train maker now expects negative free cash flow of €1.5bn for the full year, down from previous guidance of positive cash flow. It also slashed its adjusted profit margin forecast to 1 per cent from 6.5 per cent and reduced its sales growth outlook to 2–4 per cent.
The company blamed delays to large German contracts under the Coradia Max programme, which has triggered penalties and disrupted deliveries across six contracts. Alstom plans to cut its debt by €2bn. Chief executive Martin Sion, who arrived in April, is focusing on execution problems that have plagued the company since its acquisition of Bombardier.
This is the latest in a series of warnings since 2021. Sion aims to normalise performance from the next fiscal year.
Source: Financial Times Companies · Summarized by HeadlinesBriefing