by ConstanceR46
It's interesting that this basically explains why retaining them for regional service is impossible - they're full of unsupported hardware and software. Either way, Alstom-BBD has really let themselves go to shit.
Railroad Forums
Moderators: GirlOnTheTrain, mtuandrew, Tadman
Oct 5 (Reuters) - Alstom's (ALSO.PA) shares closed 37.5% lower at 13.3 euros ($14.00) on Thursday after the maker of France's iconic TGV trains slashed its full-year free cash flow (FCF) target, fuelling concerns over its debt levels as interest rates rise.While this development. could be considered "Cookie Jar Accounting" (a term I often used with my clients when I was in practice), now that $$$$ Is no longer "free" owing to the dramatic rise in interest rates, this could have resulted in "corners being cut" with appropriate testing of the components that seem to figure in the Amtrak IG's report.
The company's worst one-day share fall in more than 20 years wiped some 3 billion euros ($3.16 billion) from Alstom's market value.
On Wednesday evening, the company cut its full-year FCF guidance, pointing to order delays and a production ramp-up that weighed on cash.
The group said it now expects a cash outflow of 500-750 million euros over the full year, after a preliminary first-half outflow of 1.15 billion euros, well above the consensus for a 152 million euro outflow cited by Jefferies.
"Some time ago when interest rates were at zero, making no cash was not a big issue for a company. Now it is and the market has no mercy," said Angelo Meda, portfolio manager at Banor SIM in Milan.
BandA wrote: ↑Fri Oct 06, 2023 1:10 am I read the report. Oh boy! Here are some of my questions:
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Why are so many numbers redacted? It's not like Amtrak has competitors who will steal their financial information. It will come out eventually in court during the future lawsuits.
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