It’s all change at the top of German engineering group Siemens.
Out goes CEO Peter Loescher. He has been dumped four years before the end of his contract, though his departure is cushioned by a multi-million euro payoff.
He has been replaced by Siemens finance chief Joe Kaeser who said the conglomerate had been too inward looking and so had lost some of its “profit momentum”.
He vowed to put Siemens back on an “even keel”.
Analysts said they expect Kaeser to tighten project control, by selling off more non-core businesses.
Under Loescher profitability was held back by bungled acquisitions, charges for project delays and a focus on sales growth. He had been criticised for being too slow to react to the downturn, in contrast to rivals such as GE and Philips.
Last week, Siemens abruptly abandoned its target of boosting its core operating profit margin to at least 12 percent from 9.5 percent by 2014.
That turned out to be the final straw for supervisory board members, most of whom voted for his dismissal at a meeting on Wednesday.