Link to French Article : {http://bit.ly/1fuMucb}
Link to Google Translation : {http://bit.ly/1bgNGEf}
Bouygues depreciates its stake in Alstom € 1.4 billion. The government questioned the prospects turbine manufacturer.
It is currently one of the key issues of the Ministry of Productive Recovery. On Monday, the giant BTP Bouygues announced a depreciation of its 29.33% stake in Alstom's capital to 1.4 billion euros due to a "significant reduction in flow forecasts cash financial analysts. "
This impairment comes as concern mounts about the Alstom file. According to our information, the government asked a few months ago to a consulting firm to conduct a study on the situation of the group, in order to assess its position in its various markets and strategic options. In late January, the group headed by Patrick Kron announced a delay prospects rebound in its operating margin. It should stay around 7% this year and mark a "slight decrease" in the year 2014 to 2015 while the group was expecting to fall on a margin of 8% within two to three years. Alstom should generate a "cash flow" free negative in the second half after a loss of 511 million in the first.
The group is in fact a delicate situation considered by many observers. Its main shareholder, the Bouygues group, first of all need cash, say banking and government sources, to invest in 4G and fixed telephony. The turbine manufacturer, trains and electrical equipment must then deal with the collapse of the energy markets in Europe, while facing strong competition in emerging countries.
In the rail, the group must face giants like China CNR and CSR, even though China is a key market with investments up 30% last year to 79 billion euros. "On this segment, the group faces a similar problem of French industry: it sells mid-range, which are too expensive compared to the competition, "says a consultant. Disputed by the group statement, which emphasizes that CNR and CSR do not sell outside of China. "The transport industry has not waned during the years of crisis," says one at Alstom. In the first nine months of the year, activity is indeed increased by 3%, but the backlog was down 13% over the period.
"Strategic decisions"
In coal, where Chinese actors have both the world's largest market and key technologies, "the department activity is doing well but is too small Alstom in capital equipment," says one in government. It is also absent from the market for small gas plants (less than 50 MW), while it is the only one not to have been eroded by the crisis in mature markets. The electricity transmission business is doing well by cons. Alstom also has strong expertise in the nuclear and remains the world leader in hydraulic equipment, but these two markets do not show strong growth.
"Alstom is not on the brink summary does one government, but the group must make strategic decisions for the future." In this context, the idea of approximation of certain professions is clearly mentioned as well as a check of the state, through a capital increase. An option denied by Alstom, which emphasizes that it is "not at all on the agenda."
Anxious to find the cash, the group announced plans to sell 1 to 2 billion euros of non-strategic assets by 15 months. An opening of the capital Alstom Transport is also the study, through a partnership with an industrial or background, or via an IPO.