COPENHAGEN, Denmark (AP) — The board of high-end electronics maker Bang & Olufsen A/S on Thursday fired chief executive Torben Ballegaard Soerensen, citing poor earnings.
The announcement came a day after the Danish company, known for its premium stereo and TV systems, downgraded its full-year earnings forecast because of a slump in sales.
Bang & Olufsen said it expected its pretax profit in the current fiscal year to be between 360 million-400 million kroner (euro48.3 million-euro53.7 million; US$71 million-US$78.8 million), down from an earlier estimate of 570 million kroner.
The company's fiscal year starts on June 1.
Net income dropped 61 percent to 49.3 million kroner (euro6.6 million; US$9.7 million) in the June-November period, from 127.4 million kroner in the same period a year earlier.
''The recent years' disappointing development in the group's overall turnover, and the regrettable downgrading of the company's result, has contributed to the board's decision to make changes within the company's top management,'' Bang & Olufsen said in a statement.
It had not yet found a replacement for Ballegaard Soerensen who was dismissed ''with immediate effect.''
The board said the company should focus on its core business of quality and upscale audio and TV products. In recent years, the company has broadened its product range to include high-end cellular phones and car stereos.
