Kron's scorecard

14 May 2003

The French engineering group can probably meet this year s liquidity needs from asset disposals. But Alstom has to squeeze out more cash from operations if it is to remain viable in the long run.

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Alstom, the French engineering group, reported results for the year to March 31, 2003.

The group burned E265m of free cash over the year, including an E1.1bn cash outflow relating to faulty turbines.

However, Alstom reduced its net debt including securitised receivables to E4.9bn from E5.3bn, factoring in proceeds from a rights issue and asset sales.

Sales rose by 1% over the year, but orders fell by 4% and the backlog by 8%, on a constant currency basis excluding the impact of acquisitions and disposals. On the same basis, the operating margin was minus 2%, rising to 4.1% if exceptional items are excluded. Alstom expects sales to fall by 5% this year.

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