GKN parts company with CEO-designate Cummings
GKN has parted company with Kevin Cummings, only two months after saying he would step up to be chief executive at the aircraft and vehicle parts maker, and warned of further issues at its aerospace business.
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Cummings, who heads GKN's aerospace business in North America, was meant to take over from Nigel Stein, the current chief executive, when he retires at the end of December.
But on Thursday GKN said Cummings, who was given the promotion in September, had left the company and that Anne Stevens, a non-executive director, would do the job until a replacement for Stein is found.
Cummings has left after a profit warning in October caused by two unidentified claims costing $53m and weak performance at his aerospace division, with the company now also revealing further problems at the business along with the abrupt departure.
GKN shares fell as much as 10% and were down 6.3% to 291.3p at 11:00 GMT.
The FTSE 100 company said: "The GKN board has concluded that the next stage of GKN’s development is best delivered under alternative leadership. As a result, Kevin Cummings, previously CEO-designate, will leave the board and GKN with immediate effect."
GKN announced Cummings had left as it predicted a further write-off of between £80m and £130m at its aerospace plants in North America. In October GKN said it would take a £15m charge at its aerospace facility in Alabama to cover reduced estimates for inventory and payments due.
The company 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."
Mike van Dulken, head of research at Accendo Markets, said: "A much bigger charge following a review of its Alabama facility will fuel real concern about more skeletons in its North American aerospace closet. Shareholder patience is threadbare with so much bad news."
Hans Buthker, who joined GKN when it bought Fokker Technologies in 2015, will become chief executive of the aerospace division with immediate effect. The board will start a search for a new boss immediately, GKN said.
Stevens has experience in the aerospace and car industries, GKN said. She spent 16 years at Ford, including as chief operating officer for the Americas, and then ran Carpenter Technology, a metals producer for the aerospace, transportation, medical and energy industries.