Nov 15 (Reuters) - Alstom on Wednesday said it would cut jobs and sell assets, and was considering a capital increase as part of a series of efforts to boost its balance sheet and alleviate investor concerns over debt.
The train maker added that Henri Poupart-Lafarge would step down as chairman, but remain chief executive. Alstom's board will propose Philippe Petitcolin - a former CEO of Safran - as a new chairman.
Alstom's management, and its shares, have been under pressure since the group issued a cash warning in October, fuelling investors' worries over debt. However, some analysts have said the share plunge was "overdone", viewing the cash problems as temporary and transitory.
"The negative free cash flow of Alstom during this first half is a clear call for change. While demand remains sustained, despite some volatility, our commercial performance has been soft," Poupart-Lafarge said in a statement.
The maker of France's iconic TGV trains said it aimed to cut about 1,500 staff to help meet its confirmed mid-term targets.
Alstom plans to cut its net debt by 2 billion euros ($2.2 billion) by March 2025. As of Sept. 30, it had a net debt of 3.43 billion euros.
The group added it would propose that no dividend be paid for the current fiscal year.
($1 = 0.9199 euros)
Reporting by Olivier Sorgho in Gdansk; editing by Milla Nissi
Source: Reuters