Capital market-relevant press releases, 2005-08-12, 02:30 PM
Change in organization of Executive Board at ThyssenKrupp
In view of its size and the differences in market conditions and production flows, the steel operation of ThyssenKrupp is to be reorganized. The intermediate holding company Steel will be disbanded at September 30, 2005, and the Carbon and Stainless Steel activities will then be run as independent segments - ThyssenKrupp Steel and ThyssenKrupp Stainless. This also accommodates the future strategies of the two businesses.
As a consequence of the disbandment of the intermediate holding company Steel, the Supervisory Board of ThyssenKrupp AG resolved in its meeting on August 12 to make corresponding changes to the organization of the Executive Board.
The future organization will be based on the principle that each segment is represented by its CEO on the Executive Board of ThyssenKrupp AG. The Executive Board members not responsible for a segment will be in charge of the corporate departments at ThyssenKrupp AG.
The CEOs of the future segments ThyssenKrupp Steel and ThyssenKrupp Stainless - Dr. Karl-Ulrich Köhler (49) and Jürgen Hermann Fechter (42) - will be appointed to the Executive Board of ThyssenKrupp AG effective October 1, 2005. Gary Elliott (61), Chief Executive of ThyssenKrupp Elevator AG, will also join the Executive Board of ThyssenKrupp AG effective October 1, 2005.
The Executive Board of ThyssenKrupp AG will then comprise the following members: Prof. Dr. Ekkehard Schulz (Chairman), Prof. Dr. Ulrich Middelmann (Vice Chairman), Dr. Stefan Kirsten (CFO), Ralph Labonte (HR Director) as well as the Chief Executives of the six segments Dr. Karl-Ulrich Köhler (Steel), Jürgen Hermann Fechter (Stainless), Dr. Wolfram Mörsdorf (Automotive), Dr. Olaf Berlien (Technologies), Gary Elliott (Elevator), and Edwin Eichler (Services).
In addition, the Executive Committee, Personnel Committee and Supervisory Board discussed the question of succession to the position of Executive Board Chairman. With the program of consolidation and restructuring largely completed, the Divest 33+ program successfully implemented, very strong earnings in the 3rd quarter of fiscal 2004/2005 and the expectation of best-ever EBT for the full year of 1.7 billion euros, the medium-term goal is a profitable sales growth to 50 billion euros.
To achieve this target, the Executive Board needs a mixture of younger members, international experience and presence, and personnel continuity. For this reason, the Executive Committee and the Personnel Committee have decided to propose to the Supervisory Board at its meeting in January 2006 that Prof. Dr. Ekkehard Schulz's contract, which expires in January 2007, should be extended from that time by a further two years to the close of the Annual General Meeting in January 2009.
This will give the Executive Board of ThyssenKrupp a mix of younger members and continuity which will facilitate meeting the Group's targets.
Executive Boards Responsibilities: