By Juliette Portala

(Reuters) – Alstom (EPA:) Shares fell sharply Wednesday due to weak gains earlier. The market was split by comments from the French train manufacturer regarding cash flow generation, and guidance.

Stocks rose by 9% upon opening, but then plummeted nearly 12%. Stocks had fallen 9.8% as of 1229 GMT.

William Mackie from Kepler Cheuvreux said, “There’s a stark bifurcated viewpoint on the Mid-Term Prospects for Alstom. Specifically the group’s ability to generate Cash and Strengthen the Capital Structure.”

Credit Suisse was most reassured by the positive cash flow reported by France’s TGV train maker. It reached 469M euros (or $4494.7 Million) during its second half.

However, cash flow was negative at 992million euros due to inherited expenses from the acquisition of legacy projects by Canadian Bombardier.

Henri Poupart Lafarge (Chief Executive Officer) stated to reporters that they have settled most of the disputes and have a much smaller risk portfolio.

Alstom stated that it expects to realize 400 million euro in cost savings from the acquisition within the fiscal year 2024-2025, and between 475 million and 500 million each year from 2025-2026.

Kepler’s Mackie however stated that they were unable provide cash flow guidance for this year.

Jefferies stated that the market wanted more detail on cash flow and seasonality.

Alstom announced that it will propose a 0.25 euro dividend per share. This, according JPMorgan (NYSE:), should reduce investors’ concern over the need for capital increases.

BFM Business, the French financial news site, reported Wednesday that Alstom had been in discussions with Russian oligarchs about selling its 20% share in Moscow-based Transmashholding. This was after it took a 441 million-euro loss in the aftermath of conflict in Ukraine.

Poupart Lafarge, speaking on recent geopolitical issues said that they would be “opportunistic according to events.”

($1 = 0.9480 euros)