French builder Bouygues SA (BOUYY.PK) Monday said it would recognize an accounting write-down of 1.404 billion euros in its financial statements for 2013, against its investment in speed-train maker Alstom (AOMFF.PK,ALS.L). This will have no impact on the Group's cash position or operating performance.
While publishing third-quarter orders and sales for the 2013/14 financial year on January 21, Alstom said persistent weakness in demand for new thermal power plants was weighing on its outlook for free cash flow and operating margin.
According to Bouygues, this announcement led to a significant deterioration in financial analysts' cash flow forecasts, an item used by Bouygues to determine the valuations against which it tests the carrying amount of the investment in Alstom in its consolidated financial statements.
This adjustment will be recognized in the financial statements for the fourth quarter of 2013.
Consequently, the carrying amount of the investment in Alstom reported in the consolidated balance sheet as of December 31, 2013 will be reduced to 3.079 billion euros. This write-down will have no impact on the cash position or operating performance of the Bouygues group.
Moreover, Bouygues will not recognize any other profit or loss in respect of its investment in Alstom during the fourth quarter of 2013.
For comments and feedback contact: editorial@rttnews.com
Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.