Alstom warns of further restructuring if orders fail to pick up

0 Comments | AFP, June, 2004

PARIS (AFP) — French engineering group Alstom warned that its financial results could be hurt if orders failed to show a durable improvement this year.

But the troubled giant, which builds high-speed trains, ocean liners and power stations, also said Friday in its annual report for 2003-2004 that it still foresaw positive cash flow in 2005-2006 and an operating margin of six percent.

Nonetheless, the restructuring warning prompted a sharp fall in Alstom shares, which at mid-day were down four percent at 0.72 euros on a generally weaker overall Paris market.

"If the recovery in some of our markets and a return of client confidence, which was noted in the second half of 2003-2004, are not confirmed in a lasting manner it could have an unfavorable impact on our...