2023-11-16 07:06:06
The announcement is accompanied by asset sales and even a possible capital increase “depending on market conditions”.
Today, the French railway equipment specialist announced a cost reduction plan including the elimination of 1,500 jobs, or 10% of commercial and administrative functions.
By March 2025, the objective is to reduce its debt by 2 billion euros, through an asset sale program or even, “depending on market conditions“, a capital increase.
Alstom: excessive cash consumption
Since October 4, the date on which Alstom made the announcement to investors of an excessive consumption of cash, the crisis is in place.
During the first half of 2023/2024 of its staggered financial year, its free cash flow shows a negative balance of -1.1 billion euros.
The action does not recover
On October 5, the day following the announcement, the stock collapsed by 37% without managing to resurface. Henri Poupart-Lafarge, cited in a results press release, indicated that this concern “constitutes a clear call for change. Although demand remains at a sustained level, despite some volatility, our commercial performance has been weak.”
A weak performance among other things due to the finalization of the Aventra program, in other words 443 trains for the United Kingdom and inherited from the Bombardier Transportation portfolio acquired at the beginning of 2021, and a lower than expected installment payment.
What action plan?
In detail, asset sales are planned for an amount between 500 million and 1 billion euros, but also improved operational performance, with the reduction of delivery times. The group still intends to take a position on quality order intake accompanied by a higher potential margin.
At the top of the group, the functions of chairman of the board of directors will be separated from those of the general manager from July 2024. Henri Poupart-Lafarge, who has been CEO since February 2016, will only remain general manager.
1700205143
#Alstom #cut #jobs #worldwide