France's Alstom tops cash expectations on strong orders, cost control
By Alban Kacher and Anna Peverieri
Nov 13 (Reuters) -French train maker Alstom ALSO.PA on Wednesday beat expectations for its half-year cash position, helped by increased volumes and cost saving initiatives.
Alstom, which makes trains and signalling systems for urban and regional rail networks, reported a cash outflow of 138 million euros ($146 million). Analysts had expected a 354 million euro outflow, according to a company-compiled consensus.
In May, the group detailed a plan to cut debt and reform its finances including a $1 billion rights issue supported by main shareholders Caisse de dépôt et placement du Québec (CDPQ) and Bpifrance.
Alstom's cash issues are due in part to inheriting problem contracts after the 2021 acquisition of Bombardier's BBDb.TO rail business.
The group recorded adjusted operating profit (EBIT) at 515 million euros in the first half of the year, ahead of the 507 million euros expected by analysts.
"We are making steady progress on our roadmap, with backlog margins returned to pre-merger levels and a focused shift towards Services and Signalling," group CEO Henri Poupart-Lafarge said in a press release.
($1 = 0.9447 euros)
Reporting by Alban Kacher and Anna Peverieri; Editing by Mark Potter
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