Alstom plans to dispose of assets valued at €0.5-1 billion
05.12.2023
Alstom plans to divest assets worth €0.5-1 billion to reduce debt and strengthen financial stability, as reported by the Railway Supply news portal, citing rollingstock.
In the first half of 2023/24, the company reported a €90 billion order backlog and a 5% increase in revenue.
Alstom has opened another testing and technology center
However, negative free cash flow rose to -€1.1 billion, and net debt increased by 60.8% to -€3.4 billion.
To reduce debt to -€1.4 billion by March 2025, Alstom aims to sell undisclosed assets. In July 2024, shareholders will be urged to forgo dividends, causing a sharp drop in share value.
Integration issues with Bombardier Transportation led to a 16% decline in new orders, especially in Africa, Central Asia, and the Middle East.
First-half losses for 2023/24 amounted to €92 million, with €65 million linked to Bombardier Transportation integration.
Alstom introduced an optimization plan, focusing on margin improvement, increased rolling stock production, timely deliveries, enhanced working capital efficiency, and a reduction of 1,500 jobs. Leadership changes are also expected.
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