New GKN chief leaves before taking up post
THE new chief executive of engineering group GKN has left the company before even starting in the role.
The news comes as the Worcestershire-based group prepares for a further write-off of up to £130 million in the aerospace division which Kevin Cummings used to lead.
Mr Cummings was due to start the top job at the group in January following the retirement of incumbent chief executive Nigel Stein at the end of 2017.
But the listed group told the London Stock Exchange its board had concluded “the next stage of GKN’s development is best delivered under alternative leadership”.
As a result, Mr Cummings, currently chief executive of the aerospace division, will leave the board and GKN with immediate effect.
The Redditch-based group is a global engineering business which designs, manufactures and services systems and components for most of the world’s leading aircraft, vehicle and machinery manufacturers.
Anne Stevens, who has been nonexecutive director since July 2016, has been asked to assume the role of interim chief executive from January 1 until a successor is appointed. Ms Stevens is a former chairman, chief executive and president of Carpenter Technology Corp which is a metals producer for the aerospace, transportation, medical and energy sectors. Before this, she held a number of roles during a 16-year career at car manufacturer Ford and latterly as chief operating officer for the Americas. The appointment of Hans Büthker, formerly chief executive of Fokker Technologies, to the role of chief executive GKN Aerospace will be brought forward to take effect immediately. GKN said he would work with the rest of the executive team to develop plans to improve margins and cash flow across the group.
In October the group issued a profit warning, due in part to problems associated with its aerospace business in North America and a £40 million charge from two external claims.
It also said it would incur a £15 million, non-cash charge related to problems at its plant in Alabama.
In the statement, it said: “In light of the issues communicated earlier in relation to Alabama, a review of working capital has been initiated across other aerospace plants in North America.
“While this review is not yet complete, it is likely to result in a further write-off estimated to be between £80 million and £130 million, much of which built up before 2017.”