Second-quarter profits down by over a third at Boston Scientific
Published 22/07/2010 | 05:00
MEDICAL device maker Boston Scientific, which employs up to 5,000 people in Ireland, said yesterday that its second-quarter profits fell by more than a third.
During the three months from April to June, net income fell to $98m (€76.4m), or 6c per share. This compares with $158m (€123m), or 10c per share, during the second quarter of 2009. That represented a drop of about 38pc.
Revenue fell 7pc to $1.9bn (€1.48bn) from last year's figure of $2.07bn (€1.62bn). Excluding charges, the company said it earned 12c per share. Analysts had expected 3c per share in net income on $1.91bn (€1.49bn) in revenue. The fall was blamed on sliding sales of heart devices, but the results topped Wall Street's expectations.
Boston Scientific has operations in Clonmel, Co Tipperary, Galway and Cork. Its Galway centre is the company's biggest manufacturing plant worldwide, employing some 2,700 people.
In March, the company suspended sales of its two leading defibrillators because it had failed to notify US regulators of changes in the way it makes the devices. Defibrillator sales fell 24pc to $238m, while sales of stents fell 12pc to $209m. For the rest of the year, the company said it expected net income of between 54c and 62c per share, excluding charges, on revenue between $7.6bn and $7.9bn. Previously it had estimated net income between 50c and 60c per share.