The Board of GKN Group plc has reversed its decision to appoint Kevin Cummings as CEO, which it first announced in September, 2017. According to the company, “the GKN Board has concluded that the next stage of GKN’s development is best delivered under alternative leadership.” Following the announcement, Cummings left the board and GKN with immediate effect.
Anne Stevens, currently a non-executive director of the board, will assume the role of Interim Chief Executive from January 1, 2018 and remain in the post until a successor is appointed. As previously announced, Nigel Stein will continue as Chief Executive until retiring from the role on December 31, 2017.
Stevens, formerly Chairman, CEO and President of Carpenter Technology Corp, has extensive experience across both the automotive and aerospace industries. Prior to joining Carpenter, she held a number of roles during a sixteen year career at Ford Motor Company, latterly as Chief Operating Officer for the Americas. She was appointed to the GKN Board in July 2016 and is also a non-executive director of Anglo American plc, Lockheed Martin Corporation and XL Group plc.
The appointment of Hans Büthker to the role of Chief Executive GKN Aerospace will be brought forward to take effect immediately, as opposed to on the formerly announced date of January 1, 2018. Büthker will work with the rest of the executive team to develop plans to improve margins and cash flow across the group.
A review of working capital has recently been initiated across GKN’s Aerospace plants in North America. While this review is not yet complete, the group stated that it is likely to result in a write-off estimated to be between £80-130 million, much of which built up before 2017.
With the exception of the working capital write-off referred to above, all other financial guidance for the year remains unchanged.