Bloomberg News Wire. Alstom’s stock dropped as much as 14.4% to the lowest level since 2005 before regaining some ground. The French company, which is the world’s second biggest producer of products like rail cars and signaling systems, has lost more than a fifth of its market value since Russia invaded Ukraine.
Investor concern centers around Alstom’s 20% stake in Transmashholding, a manufacturer known as TMH that is the biggest supplier of rolling stock to Russia’s railways, according to its website.
The TMH stake added “significantly” to Alstom’s bottom line, according to Bloomberg Intelligence. The 44 million euros ($48 million) in the last fiscal year compares with the company’s adjusted net profit of 301 million euros, it said.
Alstom is among a raft of companies worldwide facing tough decisions about doing business in Russia. While a range of firms from oil drillers and credit card companies to carmakers have already exited or pulled back operations, some French firms with longstanding ties like energy giant TotalEnergies SE and carmaker Renault SA haven’t changed tack.