FILE PHOTO: This photograph taken on September 6, 2021 shows Alstom's logo and Alstom's Coradia iLint train, the first in the world to be powered by hydrogen, during its inauguration on the tracks of the Railway Test Center in Petite-Foret, northern France taken on September 6, 2021 . (Photo by Francois Lo Presti/ AFP)
Paris, France: Alstom shares plummeted Friday after the French train maker warned that "execution headwinds" had delayed deliveries to clients, forcing the group to abandon its profit and cash flow targets.
The company unveiled the setbacks late Thursday while reporting a four percent rise in sales for its financial year to end-March, but a dip in operating margins to around six percent.
"In a business where rigorous planning and disciplined execution are essential, some large rolling-stock projects have progressed more slowly than anticipated, weighing on near-term margins and cash," Alstom's CEO Martin Sion, who took up his new post this month, said in a statement.
"We are therefore launching immediate actions to stabilise performance, while preparing deeper operational changes to restore sustainable execution, cash generation and profitable growth."
