Siemens' board to discuss management's future at weekend: sources

Fri Jul 26, 2013 1:43pm EDT
 
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By Jens Hack and Maria Sheahan

MUNICH (Reuters) - Members of Siemens' (SIEGn.DE: Quote) supervisory board will meet at the weekend to discuss the future of the German engineering group's management, two people familiar with the matter said on Friday, a day after the firm abandoned its 2014 profit target.

There was some respite for Chief Executive Peter Loescher on financial markets, with shares in one of Europe's biggest industrial producers rising 1.4 percent after sinking around 8 percent on the profit warning a day earlier.

But with concern among financial investors growing about Loescher's ability to turn around one of Europe's biggest industrial producers, sources told Reuters that supervisory board members representing workers and shareholders had called separate emergency meetings for this weekend.

The agenda for both meetings - which come ahead of a joint meeting scheduled for Wednesday, a day before the company releases third-quarter results - includes an item on "the future composition of management", one of the sources said.

Siemens' supervisory board has 20 members and, as is customary in Germany, half of them represent the interests of workers and the other half those of shareholders in one of Germany's three biggest companies by market value.

"I'm facing headwinds now, but it's never been like me to give up or strike the sails quickly," Loescher told German daily Sueddeutsche Zeitung in a preview of an interview due to run on Saturday.

Loescher has faced criticism for being too slow to react to the global economic downturn, and his credibility has been undermined by a string of profit warnings as management over-estimated the speed of economic recovery.

A symbol of Germany's industrial backbone and the high added-value economic model that makes it the envy of the rest of Europe, Siemens is suffering from the stuttering global demand that saw German exports fall the most since late 2009 in May.   Continued...

 
The logo of Siemens AG company is pictured atop a factory in Berlin October 9, 2012. REUTERS/Fabrizio Bensch