July 5 (Reuters) - French train maker Alstom on Monday forecast negative free cash flow for its fiscal year, as it focuses on integrating Bombardier's rail business.
For the first half of 2021/22, Alstom expects negative free cash flow of 1.6-1.9 billion euros ($1.90-$2.25 billion) and "significant" negative free cash flow for the full year.
In the second half, however, it expects more deliveries and more stable operations to help it generate cash.
Alstom, which acquired Bombardier Transportation in January for 5.5 billion euros, said it expected to stabilise the projects it had inherited within two to three years, and fully leverage synergies from four to five years onwards.
"After five months, we are very, very satisfied with the integration," Alstom Chairman and Chief Executive Henri Poupart-Lafarge told reporters, adding: "We have already had commercial successes which we would not have won individually."
The combined group had won around 6 billion euros of orders in its first quarter, he added on the media call.
The deal should make Alstom the world's second-biggest player in its sector behind China's CRRC.
Beyond 2025, Alstom expects its free cash flow from net profit conversion rate to reach more than 80%, with a core profit margin of between 8% and 10%. ($1 = 0.8427 euros) (Reporting by Sarah Morland in Gdansk; Editing by Alexander Smith)
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