French train maker Alstom sees shares plunge 26% after new boss Martin Sion cuts profit forecast and reveals cash crisis

Alstom's new chief executive Martin Sion revealed a cash crisis alongside a second profit warning in a year, sending the French rolling-stock giant's shares down by as much as 28% on Monday. The group also outlined a €2bn debt-reduction target as it struggles with mounting financial pressure.

Alstom manufactures the Luas trams in Dublin and high-speed trains across Europe, meaning the crisis carries implications for rail operators well beyond France.

The latest profit warning is Sion's second since he took the helm, fuelling questions about the depth of the problems he inherited from his predecessor.

As part of the rescue plan, Alstom announced a production overhaul of its Coradia Max trains.