Alstom Shares Plunge on Lower Outlook and Debt Plan
Alstom slashed its full year outlook and announced a debt cutting plan after a review of troubled German train projects uncovered deeper than expected problems. Shares of the French manufacturer dropped sharply as the company warned of a significant cash burn.
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Alstom slashed its full-year outlook and launched a €2 billion debt-cutting plan on Monday afternoon, sending shares down 25%. The warning marks the second major setback under CEO Martin Sion since April. The train maker now expects an adjusted core profit margin of around -4% for the first half of the financial year.
