French Alstom warns of the results of the coronavirus crisis

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An Alstom logo is visible at the Alstom factory in Séméac near Tarbes, France, on February 15, 2019. REUTERS / Regis Duvignau / Files

PARIS (Reuters) – The French transport infrastructure company Alstom (ALSO.PA) warned Tuesday of its 2020-2021 fiscal year blow due to the impact on its business of the coronavirus crisis.

Nevertheless, Alstom shares rose 3.4% at the start of the session, as some traders cited positive things – such as an increase in cash flow – in the company’s annual results and noted that the stock had plummeted. approach to results.

Alstom, which agreed to buy the Bombardier earlier this year (BBDb.TO) railway division, said adjusted profit before interest and taxes (EBIT) for the 2019-2020 fiscal year increased 4% from the previous year to 630 million euros ($ 681.2 million) ).

Annual free cash flow reached 206 million euros, against 153 million a year earlier.

Traders from Bank of America and Credit Suisse both wrote in notes that Alstom’s available sales had exceeded expectations.

However, Alstom added that the coronavirus crisis – which has hit many transportation networks around the world – would have a negative impact on its orders, net profit and sales for the 2020-2021 fiscal year.

Alstom said that although it cannot give an accurate estimate of the effect of the pandemic, it expected its target to achieve an average annual growth rate of 5% during the period 2019 / 20 to 2022/23 or “slightly impacted”.

Alstom added that it hopes to conclude its agreement with Bombardier, which is subject to regulatory approvals, in the first half of 2021.

Alstom shares have fallen about 10% since early 2020.

Report by Gwenaelle Barzic and Sudip Kar-Gupta; Editing by Muralikumar Anantharaman and Mark Potter

Our standards:Principles of the Thomson Reuters Trust.

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