A major shareholder in Thyssenkrupp has criticised Chief Executive Heinrich Hiesinger for failing to achieve his own profit targets, raising tensions before the German industry group`s annual meeting next Friday.
Swedish investor Cevian reiterated its call to restructure Thyssenkrupp, in which it controls an 18 percent stake, effectively challenging Hiesinger`s plan to merge its steel business with that of India`s Tata Steel.
"Thyssenkrupp is not developing in the way we expected. Something has to change in the structure of the business," Lars Foerberg, co-founder of Cevian, told the Frankfurter Allgemeine Sonntagszeitung.
In extracts of the interview released ahead of publication on Sunday, Foerberg took Hiesinger to task over his long-term plans to achieve operating margins of between 6 and 7 percent at Thyssenkrupp`s non-steel operations.
"Even today, the company is still achieving just half of its margin target. That is simply too little," Foerberg told the newspaper.
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 Thyssenkrupp management and supervisory boards."
Cevian last clashed with Thyssenkrupp 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While facing investor criticism that Thyssenkrupp`s conglomerate structure is outdated, Hiesinger has also sought to placate a unionised workforce fearful of job losses that might arise as a result of the steel merger.
Thyssenkrupp management and workers finally struck a deal in December to secure steel plants and jobs, in a major step towards completing a merger that would create Europe`s second-largest steel group after Arcelormittal.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/markets/stocks/photo-gallery-psu-multibagger-stock-to-buy-motilal-oswal-picks-hudco-for-up-to-9-per-cent-returns-check-target-stop-loss-share-price-nse-bse-stock-market-news-303619](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306717-stock-market-pixa.jpg?itok=Tjaq_GFo)
MOFSL suggests buying this multibagger PSU stock which has given almost 5x returns in a year; check out target
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
10:20 PM IST