Alstom to sell €2bn in assets by end of 2014 in cost cutting drive

Alstom, the French maker of power equipment and trains, will deepen a cost-cutting drive and sell as much as €2 billion in assets by the end of 2014 as it seeks to sustain profit amid declining markets.

Possible disposals include a minority stake in train and railway-equipment unit Alstom Transport that may attract both industry and private-equity buyers, the company said.

Operating profit in the six months through September was €695 million, beating the average analyst estimate of €664 million. Alstom stock rose to a five-month high.

"In the current low-growth environment, we need to further reinforce our competitiveness," chief executive Patrick Kron said.

He cut his forecast for sales and margins in May, citing a slowdown in the global economy. – (Bloomberg)