Edit Module Edit Module
Bookmark and Share Email this page Email Print this page Print Pin It Feed Feed

WS Journal Proclaims ThyssenKrupp Turnaround

Heinrich Hiesinger’s strategy seems to be working as ThyssenKrupp’s fourth quarter earnings of $0.57 per share were nearly double analyst expectations.

Heinrich Hiesinger’s strategy seems to be working as ThyssenKrupp’s fourth quarter earnings of $0.57 per share were nearly double analyst expectations.

AP Photo/Martin Meissner

The Wall Street Journal described German-based ThyssenKrupp AG as a “German steel dinosaur” at the time, five years ago, when Chief Executive Heinrich Hiesinger began a painful restructuring. The company that had armed German troops for more than 150 years had fallen victim to corruption scandals, internal squabbles and inefficiency stemming from an ill-timed expansion to the Americas.

According to the Journal, Hiesinger — an engineer by trade — has since cut ThyssenKrupp’s steel production to less than 30 percent of sales and transformed the company into a more diversified capital goods company. Its elevator and escalator business is a world leader. Hiesinger found he had an entire corporate culture to reform, one that fought working as an integrated group. 

Whistleblowing about mismanagement and straight-out corruption was discouraged under the old regime. “How could it happen that our company was maneuvering itself in such a difficult situation and nobody raised a hand or corrected it beforehand?” Hiesinger commented to the Journal. “We wanted to build an organization where hierarchy is strongly reduced, so that truth has a chance to move up from bottom to top.”

Add your comment:
Edit Module
Edit Module
Edit ModuleShow Tags