GKN Plc, a key supplier to Airbus SE, took the unprecedented step of dropping its new chief six weeks before he was even due to start the job, saying it had decided he wasn’t the right person to run the business.
Kevin Cummings, who had led GKN’s aerospace division for almost four years and was handed the top post in September, has left with immediate effect, the Redditch, England-based company, which also has a major automotive division, said Thursday. The surprise announcement sent the stock to a 16-month low.
Anne Stevens
Anne Stevens, 69, a GKN director who spent 16 years at Ford Motor Co. where she was chief operating officer for the Americas, will instead become CEO on an interim basis when current chief Nigel Stein retires at the end of the year. GKN didn’t explain the switch, beyond saying that the board had concluded the group’s development “is best delivered under alternative leadership.”
At the same time, GKN said in a in a statement that write-offs at North American plants, which make parts for Airbus, helicopter producer Sikorsky and Honda Motor Co.’s new business-jet arm, could jump by as much as 130 million pounds ($171 million).
GKN shares fell 10 percent to 280 pence, the lowest intraday price since July 19, 2016, and were down 6.2 percent at 291.50 pence as of 1:41 p.m. in London. The stock has lost 12 percent this year, valuing the group at 5
Article source: https://www.bloomberg.com/news/articles/2017-11-16/gkn-ditches-ceo-designate-before-he-starts-amid-alabama-unit-woe