France's Alstom exceeds cash expectations due to strong orders and cost control

Alstom, the French train manufacturer, beat expectations on Wednesday for its cash position half-year. This was due to increased volumes and cost savings initiatives.

Alstom, a manufacturer of trains and signalling for urban and regional railway networks, reported an outflow in cash of 138 millions euros ($146million). According to a consensus compiled by the company, analysts had anticipated a cash outflow of 354 million euros.

In May, the group revealed a plan for debt reduction and financial reform. This included a $1 billion rights offering supported by its main shareholders Caisse du depot et placement du Québec (CDPQ), and Bpifrance.

Alstom's cash problems are partly due to the fact that it inherited problem contracts following its 2021 acquisition by Bombardier of rail.

Analysts had predicted a profit of 507 million euro for the first half of this year. The adjusted operating profit of 515 million Euros was recorded by the group in the first six months of the current year.

In a recent press release, Henri Poupart Lafarge, the group's CEO said that "we are making steady progress in our roadmap. Backlog margins have returned to levels before merger and we are focusing on Services and Signalling."

(source: Reuters)