REG-ThyssenKrupp AG Strategic Reorganization of ThyssenKrupp

Thu Mar 19, 2009 6:10am EDT

* Reuters is not responsible for the content in this press release.

DÜSSELDORF, Germany--(Business Wire)--


Reorganization of the segments into two divisions - Executive Board reduced by
three members Intensified economic downturn significantly impacting the Group 

The economic situation in almost all countries and industries has deteriorated
in recent weeks with even greater speed and severity than expected. The global
economy finds itself in a deep recession. ThyssenKrupp is adapting to the
changed economic environment and positioning itself more strongly as an
integrated materials and technology Group. To this end the Group is to be
reorganized into two divisions. The aim is to sharpen the focus of business
activity and create a leaner, more efficient structure, including in the
administrative areas. This is expected to yield additional sustainable cost
savings of up to EUR500 million per year. 

In an extraordinary meeting on March 27, 2009, the Supervisory Board of
ThyssenKrupp AG will be requested to approve the following items: 

ThyssenKrupp will reorganize the five segments Steel, Stainless, Technologies,
Elevator and Services into two divisions. The Steel, Stainless and Services
segments will be combined in a new Materials division. The Technologies and
Elevator segments will be joined to form a new Technologies division. 

From April 1, 2009 the Steel segment headed to date by Dr. Karl-Ulrich Köhler
(52) and the Stainless segment headed by Jürgen H. Fechter (46) will both be
managed by Edwin Eichler (50), Executive Board Chairman of ThyssenKrupp
Services. Also as of April 1, 2009, the Elevator segment headed to date by Edwin
Eichler will be managed by Dr. Olaf Berlien (46), who will also remain Executive
Board Chairman of ThyssenKrupp Technologies. 

The new Group structure is to be implemented as of the beginning of the new
fiscal year on October 1, 2009. 

The planned adjustments at all levels of the administrative departments will
also be reflected in the Executive Board of ThyssenKrupp AG. Jürgen H. Fechter
and Dr. Karl-Ulrich Köhler, both members of the Executive Board of ThyssenKrupp
AG, are to stand down from the Executive Board by mutual agreement at March 31,
2009. They will continue to be available to the Group in an advisory capacity.
No reappointment will be made for the position held by Dr. Wolfram Mörsdorf
(60), whose term of office is due to end on April 14, 2009. In accordance with
the resolution of the Supervisory Board and as already reported at the Annual
General Meeting on January 23, Dr. Ulrich Middelmann (64), Vice Chairman of the
Executive Board of ThyssenKrupp AG, will stand down from the Executive Board of
ThyssenKrupp AG at the close of the Annual General Meeting on January 21, 2010. 

Dr. Alan Hippe (42) - Chief Financial Officer of ThyssenKrupp AG effective April
1, 2009 - will take over as of this date responsibility for Controlling,
Accounting and Financial Reporting, Taxes and Customs, Mergers & Acquisitions,
Materials Management as well as Corporate Finance and Investor Relations. From
April 1, 2009 until his retirement, Dr. Ulrich Middelmann will concentrate on
the implementation of the new Group structure and on the corporate program
ThyssenKrupp PLUS. He will also be in charge of Compliance. 

'With this structural and personnel reorganization, ThyssenKrupp will be able to
respond more quickly to the market and implement strategic measures more
efficiently. This means we are in the best position to emerge stronger from this
difficult economic situation,' says ThyssenKrupp's Executive Board Chairman Dr.
Ekkehard Schulz. 

Provided the economic situation improves in the 2nd half of the year as a result
among other things of the economic stimulus programs introduced, ThyssenKrupp
expects to report positive operating earnings - before project and restructuring
costs - for the 2008/2009 fiscal year. Earnings will be significantly affected
by project costs for the new steel plants, restructuring expenditure among other
things for personnel measures, and write-downs. The drastic slump in demand for
carbon steel, stainless steel and in international materials distribution is
having a severe impact on business at ThyssenKrupp. Some areas of the capital
goods business - in particular automotive supplies and civil shipbuilding - are
also showing a worse than expected earnings development. Earnings in the
Elevator segment remain very encouraging and are fully in line with
expectations. Overall ThyssenKrupp currently expects to report only slightly
positive operating earnings - before project and restructuring costs - in the
1st half of the current fiscal year 2008/09. For the 2nd quarter a loss is
therefore expected. In particular the severe capacity underutilization and price
pressure as well as anticipated further write-downs on inventories will weigh
heavily on results. 

Questions should be addressed to Dr. Jürgen Claassen (Communications and
Strategy, Tel. +49 211/824-36001) or Dr. Claus Ehrenbeck (Investor Relations,
Tel. +49 211/824-36464).

                                                                             
 Sprache:     Deutsch                                                        
 Emittent:    ThyssenKrupp AG                                                
              August-Thyssen-Str. 1                                          
              40211 Düsseldorf                                               
              Deutschland                                                    
 Telefon:     +49-(0)211-824-1                                               
 Fax:         +49-(0)211-824-36000                                           
 E-Mail:      info@thyssenkrupp.com                                          
 Internet:    www.thyssenkrupp.com                                           
 ISIN:        DE0007500001                                                   
 WKN:         750000                                                         
 Indizes:     DAX                                                            
 Börsen:      Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf;   
              Freiverkehr in Berlin, Hannover, Stuttgart, München, Hamburg;  
              Terminbörse EUREX                                              
                                                                             


Weitere Informationen im Internet unter Investor Relations: Anleihen / Creditor
Relations, Further information can be found on our website under Investor
Relations: Bonds / Creditor Relations

                                   
 ThyssenKrupp AG                   
 Claus Ehrenbeck, 0211-824-36464   
 Claus.Ehrenbeck@thyssenkrupp.com  


ThyssenKrupp AG 

Copyright Business Wire 2009

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