(Reuters) – Alstom (PA:) on Wednesday reported a smaller-than-expected cash outflow for the first half of its financial year, as it integrates projects the French company took over from the rail unit it bought from Canada’s Bombardier (OTC:).

Alstom is a manufacturer of signalling systems and trains for regional and urban rail networks. It purchased Bombardier Transportation in early 2012, a deal worth 5.5 billion euros. This should place the French-based trainmaker second behind China’s CRRC.

However, Alstom was able to stabilize some legacy projects and predict significant cash outflows in its current financial year.

According to the company, it reported negative cash flows of 1.46 billion euro ($1.69 trillion) in April through September 2021. This compares with its July forecast for a negative 1.6-1.9 billion euro.

One year ago, the company had posted half-year net outflows of only 253 millions euros.

Henri Poupart Lafarge, Chief Executive stated in a statement the integration of rail and stabilisation of projects were “fully on track”.

He said, “The group achieved a strong commercial performance in all areas and product lines. This was illustrated by major wins in Mexico, Taiwan or Europe.”

Company confirmed its prediction that cash would be generated in the second quarter, along with confirming its financial targets for the future.

Alstom posted a 14% growth in its half-year sales adjusted for acquisitions, and its adjusted net income for that period edged up at 172 million Euros.

($1 = 0.8655 euros)