GKN PLC Board Change and Guidance Update

 
TIDMGKN 
 
16 November 2017 
 
                                GKN plc ("GKN") 
 
                       Board Change and Guidance Update 
 
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 GBP80 million and GBP130 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. 
 
Further information: 
 
Analysts/Investors: 
 
Guy Stainer 
 
Investor Relations Director 
 
GKN plc 
 
T: [phone] 
 
M: [phone] 
 
E: [e-mail] 
 
Media: 
 
Andrew Lorenz, FTI Consulting 
 
T: [phone] 
 
M: [phone] 
 
Person responsible 
 
The person responsible for arranging the release of this announcement on behalf 
of the Company is Kerry Watson, Company Secretary ([phone]). 
 
Cautionary Statement 
 
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 GBP9.4 billion in the year 
to 31 December 2016. 
 
 
 
END 
 

(END) Dow Jones Newswires

November 16, 2017 02:01 ET (07:01 GMT)