(Updated throughout with stock prices and analyst comments)
by Gaelle Sheehan
Alstom ALSO.PA on Wednesday reported lower-than-expected revenue in the third quarter of its fiscal year and announced no major progress on its debt reduction plan, a key point of investor concerns.
The group announced last November that it was considering a capital increase, job cuts and asset sales, as part of a series of efforts aimed at reducing its debt.
On Wednesday, Alstom indicated that “the asset disposal processes are progressing”, which allows it to confirm the objective of 500 million and one billion euros in proceeds from disposals.
“The feasibility and sizing of a capital increase (with pre-emptive rights for shareholders) are being studied in parallel,” indicates Alstom.
The group will announce in May, during the publication of its 2023-2024 annual results, the breakdown of its two billion euro debt reduction plan.
In view of Wednesday’s publication, the option of the capital increase is “more likely than before”, estimate JPMorgan analysts in a note.
On the Paris Stock Exchange, Alstom shares first opened up more than 3%, before turning downward and giving way.
4.07
% has
11.42
euros to
10
h
42
.
Last year, Alstom lost half its value on the stock market. The title accused a
historic dive
by 37% on October 5 after issuing a warning on its cash flow.
During the third quarter ended at the end of December, the group’s turnover stood at 4.33 billion euros, up 2.6% year-on-year, driven by the good performance of its Services and Systems activities. .
However, this is below consensus, point out JPMorgan analysts and a trader.
The French railway equipment specialist also reported 5.45 billion euros in orders in Q3, up 5.8% on published variation and 4% above consensus.
Alstom has confirmed its short and medium term objectives.
(Written by Gaëlle Sheehan, with Olivier Sorgho, edited by Blandine Hénault)