Alstom slashes annual margin target, sees €1.5 billion cash burn

Alstom SA

Today 06:54

Nov 2 (Reuters) - French train maker Alstom ALSO.PA cut its full-year outlook again on Monday, after execution problems on its Coradia Max platform in Germany drove half-year profitability sharply lower and worsened cash flow.
The group said its adjusted core profit margin was around -4% in the first half of the financial year, compared with +6.4% a year earlier, as it lowered its full-year forecast to around 1% from earlier 6.5%.
It also cut its free cash flow outlook for the year to an outflow of €1.5 billion ($1.68 billion), after previously guiding for a positive result, and launched a plan to reduce debt by around €2 billion.
($1 = 0.8948 euros)

(Reporting by Hugo Lhomedet in Gdansk, editing by Milla Nissi-Prussak)
((hugo.lhomedet@thomsonreuters.com))