Comprehensive financing package, Full-Year Results
2003/2004
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COMPREHENSIVE FINANCING PACKAGE
FULL-YEAR RESULTS 2003/04
1st April 2003 31st March 2004
COMPREHENSIVE FINANCING PACKAGE IN ADVANCED
NEGOTIATION
Equity to be strengthened by between 1.8 -
2.5 bn
- Conversion into equity of 300 m
subordinated bonds held by the French State
- New capital increase of between 1.5 -
2.2 bn
- rights
issue of between 1.0 - 1.2 bn
-
debt-to-equity swap of between 500 m - 1.2 bn
Extension of bonding capacity aimed at covering
commercial needs for next 2 years
ALSTOMs current scope of activities confirmed:
additional disposals representing 1.5 bn in sales will
not affect remaining activities
Shareholding structure stabilised: French State to
become important minority shareholder pending the Groups
recovery
Package subject to European Commission approval (formal
decision expected end- June 2004)
FULL-YEAR RESULTS 2003/04
Operating margin in line with guidance
Orders received: 16.5 bn, up 1% from
fiscal year 2002/03 on a comparable basis, with strong rebound
in the second half (+34%)
Sales: 16.7 bn, down 10% from fiscal year
2002/03 on a comparable basis
Operating margin at 1.8%, hit by exceptional
charges
Implementation of major restructuring and
overhead reduction plans
Heavy net loss due to low operating income, high
financial and exceptional restructuring expenses, write-down of
deferred tax assets
Exceptional restructuring (655 m)
and financial (460 m) costs
Net loss of 1,836 m
Nominal value of the share to be reduced from
1.25 to 0.35 subject to
shareholder approval
Free cash flow in line with guidance; further debt
reduction
Negative free cash flow of 1,007 m, after cash
outflow of 766 m for GT24/GT26
Economic debt reduced to 3.0 bn at 31 March 2004
from 4.9 bn at 31 March 2003
For full press release see attached