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Drop in orders sees Alstom shares plunge

Low demand for the company’s thermal power plant technology has seen Alstom miss its full-year profit target.

The company’s shares plunged 14 per cent after the announcement.

The firm said orders fell 12 per cent in the first nine months of its financial year and the lack of uptake for Alstom’s (Euronext:à‚ ALO) new thermal power plants means it would spend more cash than initially forecast.

Patrick Kron
Orders for Alstom’s thermal power turbines fell 4 per cent to $2.1bn in the three months to the end of December. It said demand for new plants had slowed in emerging markets, and remained “subdued” in mature markets.

“In this difficult environment, our focus remains on the implementation and acceleration of the ambitious cost savings initiatives which have been launched,” said chairman and chief executive Patrick Kron.

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