North-East Business
Cummins appoint new Darlington plant boss
8:00am Saturday 4th February 2012
THE man credited with turning around the fortunes of an iconic North-East engineering plant is stepping down after 41 years of service.
Mike McCabe, who worked his way up from the factory floor to become manager of Cummins engine plant in Darlington, will retire on March 31.
Des McMenamin has been promoted from assistant plant manager to replace Mr McCabe on April 2.
The move came as US-headquartered Cummins announced record revenue and profits in 2011 driven by growth in emerging overseas markets, including China, India and Brazil.
Global revenue jumped 36 per cent from 2010 to £11.4bn, and earnings before interest and taxes (EBIT) were up by 54 per cent. The company projected 10 per cent revenue growth and stronger operating margins in 2012, with global sales expected to top £12bn.
The Yarm Road, Darlington plant recorded several landmarks of its own last year.
Under Mr McCabes leadership the workforce smashed production, quality and efficiency records, and the one millionth mid range engine was made. The bumper year continued the plants strong recovery since it shed 440 workers between 2008 to 2009 amid plummeting demand.
"I want to thank Mike for all that he has done for Cummins, and for me, and I wish him the very best in this next phase of his life," said Scott Schneider, executive director at Cummins. "Mike has been a valuable member of our leadership team and he will be missed," he added. Mr McCabe joined Cummins aged 17 as a technician apprentice on the shop floor and has spent his entire career in manufacturing.
Mr McMenamin has a Manufacturing Engineering degree from Queen's University Belfast and an MBA from the University of Strathclyde in Glasgow.
He joined the Darlington plant in 2008 and has held leadership roles in shop operations and quality. Before joining Cummins he worked for both GE and Rolls Royce.
Cummins had its best year ever in 2011, despite economic uncertainty in a number of key areas, such as Europe and North Africa. "We continue to benefit from our leading position in a number of end markets and geographies," said Tom Linebarger, Chairman and Chief Executive. "Revenue in the United States grew 53 percent and international revenue grew 27 per cent year-over-year. In fact, we experienced record full year revenues in North America, Brazil, China, India and a number of other important markets.
"Our 2011 results and our forecast for 2012 reaffirms our confidence in reaching our goal of achieving $30bn (19bn) in sales and 18 per cent EBIT in 2015," Mr Linebarger added.
Based on the current forecast, Cummins anticipates that total company revenues will increase 10 percent in 2012, with gross earnings in the range of 14.5 to 15 percent of sales.