ALSTOM has reported a net loss of €309m for 2023-24, a worsening of its position the year before, when the net loss was €132m. The company also reported negative free cash flow of €557m compared with a positive figure of €199m in 2022-23.
Meeting on May 7, the Alstom board proposed that no dividend will be paid for 2023-24.
Orders in 2023-24 were down 8.4% at €18.9bn from €20.7bn the year before. Alstom says recent order value was mostly driven by the “landmark” €2.5bn contract to supply 130 Coradia Stream EMUs that was awarded in May 2022 by SFBW, the rolling stock leasing company owned by the German state of Baden-Württemberg.
Sales were up 6.7% at €17.6bn in 2023-24 from €16.5bn the year before. The backlog stood at €91.9bn as of March 31 2024, up 5.2% from €87.4bn the year before, providing strong potential for future sales, Alstom says.
Rolling stock production rates continued to ramp up, with Alstom delivering 4645 cars in 2023-24 compared with 4151 the year before.
In 2023-24 adjusted Ebit was €997m, up 17% from €852m the year before.
Alstom’s net debt stood at €2.99bn as of March 31 2024, up from €2.13bn the year before. The company says that it benefits from a “solid” €6.3bn liquidity position and equity amounting to €8.78bn as of March 31 2024.
The company is continuing to pursue its €2bn deleveraging plan to maintain its investment grade rating, which Alstom says has now been affirmed at Baa3. The outlook will change to stable once the company has completed a €750m hybrid bond issue and a €1bn rights issue by September.
Around €1.2bn of the proceeds from these capital markets transactions and asset disposals will be used to repay financial debt. Divestments are expected to raise €700m, including €75m from the sale of Alstom’s 20% stake in TMH of Russia which was completed in January.
Alstom has agreed to sell its conventional signalling business in North America to Knorr-Bremse, which will generate proceeds of €630m upon closing, expected this summer.
“Alstom recorded a strong rebound during the second half of the year, with solid order intake, strong organic growth, improved profitability and €562m free cash flow generation,” says Alstom chairman and CEO, Mr Henri Poupart-Lafarge.
“The group is capitalising on the solid operational progress made over the last three years and is launching new initiatives to improve its industrial performance and reduce overheads and indirect procurement costs. Altogether, Alstom is now set on stronger foundations to deliver sustainable profit and cash generation.”
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