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.
The Board has asked Anne Stevens, currently a non-executive director of the Board, to assume the role of Interim Chief Executive with effect from 1 January 2018 until a successor is appointed. As planned, Nigel Stein will continue as Chief Executive until he retires from the role on 31 December 2017.
Anne has extensive experience across both automotive and aerospace industries. She is a former Chairman, CEO and President of Carpenter Technology Corp, a specialty metals producer for the aerospace, transportation, medical and energy sectors. Prior to this she held a number of roles during a 16 year career at Ford Motor Company, latterly as Chief Operating Officer for the Americas. She was appointed to the Board in July 2016. She is also a non-executive director of Anglo American plc, Lockheed Martin Corporation and XL Group plc.
The appointment of Hans Büthker, formerly CEO Fokker Technologies, to the role of Chief Executive GKN Aerospace will be brought forward to take effect immediately. He will work with the rest of the executive team to develop plans to improve margins and cash flow across the Group.
The Nominations Committee will lead an internal and external search process, together with external consultants, to identify and appoint a successor as Chief Executive of GKN. This process will begin immediately.
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.
With the exception of the working capital write-off referred to above, all other guidance for the full year remains unchanged.
GKN plc LEI: 213800QNZ22GS95OSW84
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
Investor Relations Director
T: +44 (0)207 463 2382
M: +44 (0)7739 778187
Andrew Lorenz, FTI Consulting
T: +44 (0)203 727 1323
M: +44 (0)7775 641807
The person responsible for arranging the release of this announcement on behalf of the Company is Kerry Watson, Company Secretary (+44 1527 517715).
This announcement contains forward looking statements which are made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated. Nothing in this document should be regarded as a profits forecast.
Notes to Editors
GKN plc is a global engineering group. It has three divisions; GKN Aerospace, GKN Driveline and GKN Powder Metallurgy, which operate in the aerospace and automotive markets. Over 58,000 people work in GKN companies and equity accounted investments in more than 30 countries. GKN plc is listed on the London Stock Exchange (LSE: GKN) and recorded sales of £9.4 billion in the year to 31 December 2016.