GKN has ditched its entering chief executive before his start date
Shares in the £5billion FTSE 100 set fell 14¾p to a 15-month low of 296p after it parted company with Kevin Cummings precisely two months after announcing he would succeed Nigel Stein in January.
Stay month the autoparts and aerospace components group issued a profit advice after being hit with two claims and flagging problems in its North American aerospace house.
Stein described those setbacks, which wiped £600million from its Stock Exchange value, as “like walking down the street and being mugged”.
Pay outs in the company fell 14¾p to a 15-month low of 296p after Kevin Cummings formerly larboard
While losing one CEO is unfortunate, effectively losing two at once suggests carelessness
Cummings joined GKN Aerospace in North America in 2008 in advance stepping up to the role of group aerospace chief executive in January 2014.
Must already taken a £15million charge on factory stock monopolized in Alabama, a review across other Aerospace plants in North America desire lead to a further writedown of between £80-130million.
On Cummings’s job last month to the top job, GKN chairman Mike Turner said he had made “a massive contribution since being appointed to the board and I am sure he will be an bonzer successor to Nigel”.
Cummings’s pay-off is still being worked out. GKN non-executive supervisor Anne Stevens will take on the role of interim CEO from January 1 until a successor is authorized.
Nigel was axed after another big writedown at the business he in use accustomed to to run
Stein will continue to run the company until then. Hans Buthker, who joined GKN with the 2015 acquirement of Fokker Technologies, will now become CEO of GKN Aerospace immediately.
The problems could form doubt on the attractiveness of aerospace as a standalone business, after speculation GKN could split its automotive and aerospace partitions.
Nicholas Hyett, of investment firm Hargreaves Lansdown, said: “Influence capital writedowns happen from time to time, but when they get in waves of ever increasing size investors get worried, with credible reason.
«If US aviation is broken, what about the rest of the business?
“While run out of one CEO is unfortunate, effectively losing two at once suggests carelessness. Hopefully whoever grips over from last-minute substitute Anne Stevens gets to kick a ball already they’re unceremoniously hauled off the pitch.”