Alstom cancels dividend in reaction to crisis
THERE will be no payout for shareholders at Alstom this summer, after the board voted not to propose a dividend at the next shareholders’.meeting on 8 July. The company described the move as an ‘exceptional measure’, which had been decided on ‘in the context of the current crisis, and in a spirit of responsibility towards all its stakeholders’. However, Alstom pointed out in its newly-published full year results for 2019-20 that it has ’strong commercial momentum’, with an order book worth €9.9 billion. It added that there are ‘strong rail market fundamentals driven by sustainable transport needs’. Chairman and CEO Henri Poupart-Lafarge said: ‘The end of the fiscal year was marked by the unprecedented Covid-19 crisis. Alstom considers the health and safety of its employees and stakeholders as its top priority during this period. We are confident for the resilience of Alstom’s business in the mid-term, given the fundamentals of the rail market.’ Alstom is continuing with its takeover of Bombardier, and expects to complete the deal in the first half of next year.