PARIS: French train manufacturer Alstom said it expects to stop cash burn this financial year, mainly due to the acquisition of train operations from Canadian rival Bombardier Inc, according to a Bloomberg report.
Alstom, on Wednesday, reported capping its cash drain at 992 million euros ($1 billion) in the year through the end of March after reporting positive cash flow in the second half of the period.
“We still have a lot of work in terms of execution,” said Henri Poupart-Lafarge, CEO of the firm, referring to the challenging legacy contracts it took over after the train operations acquisition.
Alstom had a very challenging year following the purchase of Bombardier’s train business. The two companies are currently in an arbitration process, as Alstom blames the mismanagement of contracts by Bombardier for delivery delays.
Alstom also made it clear that the company is halting all deliveries and future investments in Russia because of the Ukrainian invasion.
Meanwhile, Alstom has won orders to supply trains for two more metro projects in India, confirmed Alain Spohr, managing director of Alstom India and South Asia, Money Control reported.
