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Thyssenkrupp shareholder criticises CEO, demands restructuring

Reuters  |  FRANKFURT 

(Reuters) - A major shareholder in has criticised for failing to achieve his own profit targets, raising tensions before the German group's annual meeting next Friday.

Swedish investor reiterated its call to restructure Thyssenkrupp, in which it controls an 18 percent stake, piling pressure on Hiesinger as he tries to complete a merger of its with that of India's

"is not developing in the way we expected. Something has to change in the structure of the business," Lars Foerberg, of Cevian, told the Sonntagszeitung.

Separately, weekly reported that Hiesinger would tell shareholders that had reduced its debts significantly in recent years and invested billions of euros, while its restructuring was on track.

Hiesinger and his management team consider those achievements to be a success, Spiegel reported citing people it did not name, although a goal of posting earnings of 2 billion euros ($2.44 billion) in 2017 would be missed.

Foerberg, for his part, took Hiesinger to task over his long-term plans to achieve operating margins of between 6 and 7 percent at Thyssenkrupp's operations.

"Even today, the company is still achieving just half of its margin target.

That is simply too little," Foerberg told the newspaper in extracts released from its Sunday edition.

He did not give a direct answer to a question on whether Hiesinger should resign, but said: "If a strategy doesn't achieve the desired goal, you have to change it. We expect that both from the management and supervisory boards."

last clashed with after third-quarter results were published in November that showed the company achieving its highest order intake in five years as it develops its 'smart' elevator and automotive businesses.

While facing investor criticism that Thyssenkrupp's conglomerate structure is outdated, Hiesinger has also sought to placate a unionised workforce fearful of job losses that might arise as a result of the merger.

management and workers finally struck a deal in December to plants and jobs, in a major step towards completing a merger that would create Europe's second-largest group after

($1 = 0.8201 euros)

(Reporting by Douglas Busvine; Editing by Kevin Liffey)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 23:58 IST
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