July 18, 2018 / 4:04 PM / a year ago

Thyssenkrupp CEO says company needs to hike profitability, restructure

FILE PHOTO: Thyssenkrupp's logo is seen close to the elevator test tower in Rottweil, Germany, September 25, 2017. REUTERS/Michaela Rehle/File Photo

FRANKFURT (Reuters) - Thyssenkrupp’s (TKAG.DE) new chief executive, Guido Kerkhoff, told employees the conglomerate needs to raise its profitability and restructure its Industrial Solutions and Elevators division to restore credibility with capital markets.

Kerkoff became Chief Executive following the resignation of Heinrich Hiesinger earlier this month.

“The Supervisory Board has given us a clear mandate to continue on our current path for the time being – with all businesses. Under one roof,” Kerkoff told employees in a video message.

Thyssenkrupp’s elevator business is less profitable than its main competitors so the company needs to make production more profitable, expand its service business and reduce administrative costs.

“Industrial Solutions is currently our problem child. Here we need a turnaround in our marine business and especially in our plant engineering business,” the executive said.

“But what matters to us is sustainable success. For this you always need a good balance, which considers the interests of our customers, employees and shareholders in an equal manner. I can assure you: Maximization of short-term returns at the cost of the future of the company is not our goal.”

Reporting by Tom Kaeckenhoff; Writing by Edward Taylor; Editing by Elaine Hardcastle

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