(Bloomberg) -- Alstom SA expects free cash flow to turn positive this fiscal year as the French rail-equipment manufacturer makes headway on drawing a line under an acquisition last year of a Canadian rival that soured. 

Alstom’s capped its cash drain at 992 million euros ($1 billion) in the year to March 30 after positive flow in the second half of the period, it said Wednesday. The company also said it will take a 441 million-euro impairment charge on its stake in Russia’s Transmashholding, the biggest supplier of rolling stock to Russia’s railways.

“The integration of Bombardier Transportation is fully on track with increased customer satisfaction and synergies being delivered,” Chief Executive Officer Henri Poupart-Lafarge said in a statement. 

Alstom has had a tough year following the purchase of former Bombardier Inc.’s rail business. The companies are now in an arbitration process over the deal, the CEO blaming mismanagement of contracts by Bombardier for delivery delays and the heavy spending needed to complete them.

The manufacturer upgraded its longer-term targets on synergies and proposed a dividend of 25 cents a share for fiscal 2021 as net profit swung to a loss of 581 million euros for the full year.

Investors had expressed concern around Alstom’s 20% stake in Transmashholding, known as TMH. Alstom has said it’s halting all deliveries to Russia and will suspend future investments in the country because of the war in Ukraine. 

The painful integration of Bombardier Transportation, which Poupart-Lafarge has said could take four years, follows a 5.5 billion-euro takeover in January, 2021 and a difficult process from the start. 

The French manufacturer has taken roughly 1.08 billion euros in provisions on problematic orders and a significant hit on its profit margins. 

On the brighter side, Alstom has won major train orders in recent months including in Germany, benefiting from a wave of investment in carbon-free transport across the globe. 

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