 announced the shock departure of its incoming chief executive, a mere weeks before he was due to assume the role.){kind=link}
GKN (LON:GKN) announced the shock departure of its incoming chief executive, a mere weeks before he was due to assume the role.
Kevin Cummings, whose appointment was announced back in September, had been set to take over from Nigel Stein from the first of January.
However, it has now emerged that Mr Cummings will leave the board and the company immediately, the firm said.
Non-executive director Anne Stevens, a former senior executive at Ford, will instead become interim chief executive as of January. Mr Stein will continue to run the company up until the January hand-over.
Kevin Cummings became part of GKN Aerospace in North America in 2008. He has been chief executive of the aerospace division since January of 2014, and was appointed to the board two years afterwards.
The decision comes amid an announcement of another write-down at its aerospace division, which had been led by Mr Cummings.
GKN said it would incur an additional cost of £130 million at its North American aerospace unit.
Back in October, the engineering firm issued a profit warning which was partly attributed to operational changes at its North American unit.
At the time, the firm announced that it had been “made aware of two probable claims” which would result in around a £40 million hit upon profits.
GKN’s statement added: “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-of… much of which built up before 2017.”
According to a close source, this investigation has led GKN to reach the decision that Mr Cummings proves no longer suitable to head the firm.
The company manufacturers products such as wing tips for Airbus and various parts for car-makers. Amid the news, shares plunged more than 7 percent.
As of currently, shares in GKN are currently down 6.35 percent as of 13.37PM (GMT).