Literature Review Women on boards and in TMTS and firm performance112 capital target was no longer regarded as achie vable CONERGY now guided for an EBIT of EUR 40 million earnings though set against expected risks between EUR 30 and 50 million resulting in a net loss Earnings were to be affected by consequences from delivery delays as well as difficult business conditions in the bio energy sector Risks were seen in the progress of major projects currency hedging transactions and the expected impact of write downs of inventories and receivables In an attempt to change course at the last minute the Board of Management announced that it was launching a comprehensive company wi de programme focussing on profitable growth with the aim of achieving a sus tainable improvement of the company s efficiency and profitability The core ele ments of the programme are the strate gic focus on profitable areas of business a stronger alignment towards profitable growth in the photovoltaic sector together with an improvement in cost and business structures Initial measures starting with a comprehensive analysis of internatio nal activities the business sectors and the corporate structure are to be imple mented during the current business year already CONERGY AG 2007 Oct 25 The response to the alarming development of profitability came too late a short term shortfall in liquidity had developed following CONERGY s strong growth CONERGY AG 2007 Nov 7 The liquidity crisis posed a threat to the Group s exis tence CONERGY could only overcome this precari ous situation through an inflow of funds of EUR 100 million at very short notice a third thereof through an additional credit line and two thirds through a capital increase under exclusion of shareholders subscription rights The capital increase was sub scribed by members of Management and Super visory Board family members and by Leemaster Ltd controlled by Dr Otto Happel The critical ex amination of CONERGY s accounts by the FREP was also announced in the respective ad hoc Finally due to obvious and compelling reasons founder and CEO Rueter was dismissed after al most ten years at the head of the Group He left as a wealthy man his fortune stems from the IPO proceeds and the sale of a share package shortly before the company s near collapse and is estima ted at EUR 50 million Schwarzer 2010 Rueter was to leave the company on November 15 and Dieter Ammer who had apparently failed in his function as Chairman of the Supervisory Board was to become interim CEO until appointment of a successor In an interview Waldermann 2007 Nov 7 Rueter defended his past diversification strategy from photovoltaics to further renewable energies such as wind or biomass by stating that CONERGY required several pillars and that it was simply a matter of portfolio composition 4 6 The aftermath of the crisis CONERGY issued a third profit warning in Decem ber 2007 now expecting sales below EUR 1 billi on and estimating EBIT to be between EUR 150 and 200 million Following the 2007 crisis ma nagement had to deal with the consequences of Rueter s excessive growth strategy 2008 should become a transition year In a presentation for ca pital markets in April 2008 CONERGY admitted that its expansion had been too much too soon too ambitious The company retrospectively specified the reasons for the 2007 crisis Excessively fast growth significant increase in cash requirements rapid growth in organisational structure high over heads IT and Controlling Systems don t grow in CEO optimism and overconfidence

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 112
Hinweis: Dies ist eine maschinenlesbare No-Flash Ansicht.
Klicken Sie hier um zur Online-Version zu gelangen.