Bang & Olufsen fires CEO as sales slump
Saturday 12 January 2008
Bang & Olufsen has dismissed its long-serving chief executive Torben Ballegaard Sorensen as a result of a dismal sales performance over the past six months and concerns over the strategic direction of the high-end stereo and TV manufacturer.
B&O reported a 37 per cent drop in sales this week, news that wiped a third off the Danish company's share price. Although a slowdown in sales of luxury consumer electronic products could have been anticipated since the credit crunch started to bite in August, it appears that Mr Sorensen paid the price for diversifying the business away from its core audio and visual products.
Jorgen Worning, chairman of B&O, said the company's sales performance over the past few years, not just months, had been disappointing and that the company had failed to take advantage of the booming economic conditions during Mr Sorensen's six-year tenure. The 56-year-old Dane, who previously led Lego's development of robotic toys, has left the company immediately after negotiations with the board in the wake of this week's profit warning.
B&O is famous for its iconic stereos and TVs but also sells luxury mobile phones and car accessories. But with consumers tightening their belts, the company has suffered a decline in sales in the UK, one of its largest markets, and has slashed its profit forecasts for the rest of the year. Analysts argued that the company, which was founded in the 1920s, had failed to get its product range right.
- 1 Is this bridge haunted by the ghost of nu rave?
- 2 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 3 The West has it totally wrong on Lee Kuan Yew
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Noel Gallagher: I lost sh*tloads of money, a few million, didn’t tell my wife
Is this bridge haunted by the ghost of nu rave?
Saudi Arabia says it won't rule out building nuclear weapons
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...