Consequences of the international crisis
The consequences of the international crisis and the high cost to the chief executive officers of industrial companies.
The international crisis and its impact on the industries. The CEO's responsibilities. The crisis consequences.
Restructuring in international companies are at the order of the day. We analyze the financial reports of the last quarter of 2008 have generated changes in the structures of the companies that have come to remove their own Chief Executive Officers. We find it interesting to present an excerpt from report of a European industrial company that says:
February 2008. - The weakness in fourth-quarter results show that the group has been hard hit by economic crisis, which affected mainly the construction industry in the U.S., the UK and Spain as well as the devaluation of the lira Turkish, British pound and the Russian ruble. In addition, production volumes during the month of December were very weak. Our company expects the fiscal year 2008 consolidated sales of 630 million euros and an operating cash flow (EBITDA) of approximately 30 million euros, with operating cash flow from ordinary activities (REBITDA) of approximately 34 million euros. The Group nevertheless managed to reduce net financial debt of 15 million euros from 178 million euros in December 2007 to 163.3 million euros at December 31, 2008. The above results have not been subjected to annual audit by the Auditor and are still subject to approval by the Board. As announced in November 2008, there was uncertainty regarding the company's meeting certain financial instruments in the financing contracts of the Group. Based on the above results, it is clear that these agreements do not in fact be met. Given the worsening economic environment and the expected impact on the results of the signature, the group began discussions with its lenders for the fourth quarter of 2008. These talks are progressing and relate to creating the conditions for strengthening the financial structure under circumstances, and possibly a revision of its financial situation other covenants and conditions of funding. The group will communicate the results as soon as it is available. By mutual consent with the Board of Directors, the CEO has decided to step aside. As a result, remain available for specific missions, which, at the request of the Board, may bring many years of experience. The Board wishes to thank the CEO and his years of dedication to the company.
According to our analysis, we can see that the crisis severity is affecting many companies that just a year ago looked extremely optimistic about the future.
However, in contrast to the above paragraph many companies have chosen to bet on emerging markets, without the need to retract or allow the loss of highly valued and recognized in good times. Vimay Group, supports, promotes and develops the success of those in critical situations assume the most challenging attitudes.
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