Business Irish

Wednesday 24 September 2014

Boston Scientific Irish and overseas units post €1bn in profits

Gordon Deegan

Published 07/12/2012 | 05:00

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THE Irish business of Boston Scientific and a number of overseas subsidiaries recorded pre-tax profits last year of $1.4bn (€1bn).

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The leading US medical device manufacturer is one of the largest companies in Ireland, employing more than 4,500 people here.

According to accounts for 'BSC International Holding Ltd and Subsidiaries' just filed with the Companies Office, they show that the group recorded the $1.4bn profit after increasing revenues by 2pc to $5.37bn in the 12 months to the end of December last.

The group increased pre-tax profits last year by 272pc to $1.4bn. A big factor behind the sharp rise in profits was $660m from the sale of operations.

The holding company's registered office is at Ballybrit Business Park, Galway, and the accounts also include the performance of a number of overseas subsidiaries.

According to the directors' report, they "are satisfied with the performance of the group".

Grants

The numbers employed in Ireland account for almost 20pc of Boston Scientific's global workforce of 24,000. Last year the corporation generated global revenues of $7.6bn.

Underlining the investment by Boston Scientific in Ireland, the accounts show that three of the group's seven Irish subsidiaries have received a total of €28m in grants from the Industrial Development Agency ( IDA) "which may be revoked, cancelled or abated in certain circumstances".

No breakdown is provided over the performance of Boston Scientific's Irish subsidiaries.

The directors state: "The increase in net sales is primarily due to the growth in our Wallflex line of stents and the peripheral interventions business. This increase was partly offset by the slight decrease in demand for certain cardiac rhythm management and international cardiology products."

The profits for 2011 also take into account non-cash costs of amortisation of intangible fixed assets of $429.7m and depreciation of fixed assets of $79.7m.

The figures show that the group grew its operating profit by 154pc to $909m.

The group's gross profit increased by $499m to $3.133bn in 2011.

The group of companies had accumulated profits totalling $4bn last year with shareholder funds totalling $4.3bn.

The filings show that the numbers employed by the group rose last year from 10,976 to 11,806 with payroll costs increasing by 11pc to $938m.

The accounts show that the company paid $64.9m in taxes last year compared with $68.5m in 2010.

Irish Independent

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