World · Singapore Bureau
French rail giant Alstom slashes profit guidance amid strategic review
Alstom has sharply cut its earnings forecast for the fiscal year, signalling widening challenges at the Franco-Italian train and transport equipment manufacturer. The company expects adjusted Ebit margins of around 1 per cent, a dramatic decline from its previous guidance of 6.5 per cent.
LSN Singapore ·
The revision marks the second profit warning from Alstom in recent months, underscoring operational difficulties at the firm following its acquisition of Bombardier's rail division. The company is now planning a comprehensive overhaul of its operations as it seeks to restore profitability and operational efficiency.
Alstom, which supplies rolling stock and signalling systems across Asia-Pacific and beyond, attributed the guidance cut to cost pressures and execution challenges in delivering major rail projects. The company said it is undertaking a detailed review of its portfolio and cost structure to address systemic issues.
The successive profit warnings have intensified scrutiny of management's strategy, particularly regarding the integration of the Bombardier acquisition and its ability to navigate inflationary pressures affecting the global rail sector. Alstom said the overhaul would focus on improving project delivery and operational performance across its business units.
The company did not provide details on job impacts or timeline for the restructuring programme. Alstom remains a significant player in the regional transport sector, with operations and contracts across several South and Southeast Asian markets, making the outcome of its recovery plan closely watched by industry stakeholders and investors.