Reuters is less than expected by the money maker of the Alstom train

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(Reuters) – Alstom (PA 🙂 reported a lower-than-expected outflow of money on Wednesday in the first half of its fiscal year, as the French company integrates projects it took from the train unit it bought in Canada’s Bombardier (OTC :).
Alstom, which makes trains and signaling systems for urban and regional rail networks, completed its acquisition of Bombardier Transportation earlier this year: a € 5.5 billion deal that would make the French railcar the second largest operator in its sector after China’s CRRC.
But the stabilization of some heritage projects led Alstom to anticipate “significant” cash outflows for its current year.
The company had a negative cash flow of 1,460 million euros ($ 1,690 million) from April to September 2021, compared to a negative 1.6-1.9 billion euros forecast in July.
A year earlier, it had reported mid-year outflows of just 253 million euros.
CEO Henri Poupart-Lafarge said in a statement that the integration of the railway business and the stabilization of its projects is “completely on track”.
“The team had a very good commercial performance in all regions and product lines, as evidenced by significant victories in Mexico, Taiwan or Europe,” he added.
The company confirmed that it would start generating cash from the second half of the year, and reaffirmed its medium-term financial goals for the next four years.
Alstom saw a 14% increase in mid-year sales, adjusted for purchases and exchange rates, and adjusted net profit for the period to 172 million euros.
($ 1 = 0.8655 euros)
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