Alstom rethinks ship financing role
Among other things, the plan sets a target of lifting group operating margins from today's 4% to near 5% in fiscal year 2003 and 6% in FY 2005. In the marine sector, the target is a more modest 3% by Fy2005 and 5% by March 2006.
Alstom is also rethinking its role in financing shipbuilding contracts. In September 2001 Renaissance Cruises filed for Chapter 11 protection, triggering Alstom's guarantees to banks in respect of vessels supplied to Renaissance. Alstom says it has since undertaken intensive negotiations with its financing partners and has so far reduced its theoretical exposure from 684 million euros to approximately 500 million euros, with an associated 110 million euros provision. It says that charter negotiations for the Renaissance ships are already well underway, with the first ship, the R8, recently chartered to P&O.