Bang & Olufsen sacks firm's boss

Bang & Olufsen is renowned for its stylish designs

Danish hi-fi and television-maker Bang & Olufsen (B&O) has sacked its chief executive Torben Sorensen a day after it reported a sharp fall in profits.

Mr Sorensen left the company after it was forced to announce a 37% decline in half-year profits, news that sent its share price tumbling 28% on Thursday.

B&O chairman Jorgen Worning said the firm had not had "the desired growth in turnover" during the past few years.

The company has also cut its earning targets for the next six months.

'Drastic and rash'

Mr Worning said Mr Sorensen had failed to take advantage of the global economic growth seen in recent years.

To a large extent it's the general economic development that has gone against B&O Kenneth Winther of Capinordic

"We probably will never have as good business conditions as in recent years," he said.

Analyst Kenneth Winther of Capinordic described the sacking of Mr Sorensen as "drastic and rash".

Mr Winther pointed to signs of weaker global economic growth since a credit squeeze hit back in August.

"To a large extent it's the general economic development that has gone against B&O, so I don't think there has been anything strategically wrong in the way the company has been run," he said.

B&O's key market sales have been weak over the past six months.

While sales in Denmark grew 3%, they were flat in Germany, and down 6% in the UK.