News Column

Siemens Chief May Be on Block

July 26, 2013

The future of Siemens AG chief executive Peter Loescher is expected to be discussed at top-level consultations this weekend, an industry insider said on Friday.

The leading German technology company issued a profit warning on Thursday. Siemens stated it "no longer expects to achieve a total sectors profit margin of at least 12 per cent by fiscal 2014 as aimed for in the Siemens 2014 company programme."

Siemens, whose many electronic products include trains, wind turbines and medical gear, blamed "lower market expectations."

The supervisory board is due to meet Wednesday, with "executive personnel" reportedly an item on the agenda. Siemens declined to disclose the agenda.

Labour appointees and shareholder appointees on the board are likely to determine their stance when they meet on the weekend, the source said. German law requires that just under half of most big companies' main boards consist of directors elected by employees.

Austrian-born Loescher, 55, was hired by Siemens in 2007 to rally the sprawling company after it was hit by a bribes scandal and dim profits, but has now had to pare back financial projections for the second time in three months.

The profit warning sent Siemens shares tumbling more than 7 per cent at one point on Thursday on the Frankfurt Stock Exchange.

Among the engineering troubles expected to trigger massive costs for the group have been delays delivering high-speed trains to Germany's railways, and the failure of a wind turbine installed in the United States.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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