(Updates with CEO comments, cash flow starting in second paragraph.)

Dec. 13 (Bloomberg) -- Alstom SA Chief Executive Officer Patrick Kron said he’s “confident” the French maker of trains and power stations will have positive cash flow in its fiscal second half after an outflow in the first six months.

“The first half showed a substantial cash outflow and some of the reasons are not recurring,” Kron said today near Naples, Italy, where the company was presenting a new high-speed train. “Our expectation is to be cash-positive for the second half.”

Kron said he expects “some stability and gradual recovery” for the transport division’s operating margin, as a “recovery in sales is going to be gradual.”

--With assistance from Francois de Beaupuy in Paris. Editors: Jerrold Colten, David Risser

To contact the reporter on this story: Flavia Rotondi in Rome at rotondi@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net