ALSTOM CEO Henri Poupart-Lafarge warned of costly months ahead while the company works to turn around the Bombardier deal, reports Bloomberg News.
Shares fell 8.2 per cent in early trading in Paris, the steepest drop since March last year, and were down 4.3 per cent.
The French rail equipment maker is forecasting a cash drain in the first half of 2021 between US$1.8 billion and $2.2 billion with a return to pre-acquisition margin levels only in the 2024 to 2025 fiscal year.
alstom has won significant train orders in recent months, benefitting from investment waves in global carbon-free transport.
Meanwhile, the cash issue is due to higher spending needed to make up delivery delays and mismanagement.
'Bombardier had unsound relations with suppliers and customers,' said Mr Pauper-Lafarge.
'The No. 1 priority is to keep the company under control. The last thing we want to do is transform into fire fighters running around the planet 'dealing with project issues,' said Poupart-Lafarge.
SeaNews Turkey
Shares fell 8.2 per cent in early trading in Paris, the steepest drop since March last year, and were down 4.3 per cent.
The French rail equipment maker is forecasting a cash drain in the first half of 2021 between US$1.8 billion and $2.2 billion with a return to pre-acquisition margin levels only in the 2024 to 2025 fiscal year.
alstom has won significant train orders in recent months, benefitting from investment waves in global carbon-free transport.
Meanwhile, the cash issue is due to higher spending needed to make up delivery delays and mismanagement.
'Bombardier had unsound relations with suppliers and customers,' said Mr Pauper-Lafarge.
'The No. 1 priority is to keep the company under control. The last thing we want to do is transform into fire fighters running around the planet 'dealing with project issues,' said Poupart-Lafarge.
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