Siemens Taps CFO to Succeed Ousted CEO Loescher
German engineering group Siemens named finance chief Joe Kaeser as its new boss after dumping Chief Executive Peter Loescher four years before the end of his contract following a second profit warning this year.
Loescher had promised that Siemens, whose products range from gas turbines to fast trains and ultrasound machines, would grow faster than rivals such as ABB, General Electric and Philips, but profitability was held back by bungled acquisitions, charges for project delays and a focus on sales growth.
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, which turned out to be the final straw for supervisory board members, most of whom voted for his dismissal at a meeting on Wednesday.
Kaeser, 56, will take over from Aug. 1, said Siemens, Germany's second-biggest company by value.
Loescher, whom the company said was resigning and leaving the board by mutual agreement, will remain on hand to help handle some ongoing issues until Sept. 30, the company said.
Siemens also said it would publish its fiscal third-quarter financial results at around 1000 GMT on Wednesday, a day ahead of schedule. Shares in Siemens were down 1.2 percent at 79.67 euros by 0945 GMT, while Germany's DAX index was flat.