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Profits rise four-fold to €341m at Irish arm of Boston Scientific

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Boston Scientific’s global headquarters in the United States

Boston Scientific’s global headquarters in the United States

Boston Scientific’s global headquarters in the United States

Pre-tax profits at the Irish business of Boston Scientific and a number of overseas subsidiaries last year increased more than four-fold to $423.6m (€341.68m)

The leading US medical device manufacturer is one of the largest companies in Ireland, employing almost 5,000 people here at sites in Galway, Cork and Clonmel.

According to accounts for 'BSC International Holding and Subsidiaries' just filed with the Companies Office, the group recorded the 364pc increase in pre-tax profits after revenues increased by 7pc to $5.27bn last year.

The Galway-based firm's corporation tax bill for the period was $39m. According to the directors' report, they "are satisfied with the performance of the group to date".

The directors said the increase in revenues was "primarily due to increased inter-company sales resulting from the concentration of all of Boston Scientific's production of the Drug Eluting Stent to the group's manufacturing facility in Galway".

Before last year, the manufacture of the DES was split between Galway and another Boston Scientific facility in the US. The group's gross margin was 60pc last year compared to 58pc in 2012 and the directors state that the increase "is due to the higher margin DES products".

The numbers employed in Ireland account for more than 20pc of Boston Scientific's global workforce of 23,000 - last year the corporation generated global revenues of $7.14bn.

The revenues at the Irish-based firm account for 74pc of Boston Scientific's 2013 global revenues. No breakdown is provided in relation to the performance of Boston Scientific's Irish subsidiaries.

The group's cost of sales last year totalled $2.08bn while administrative expenses amounted to $2bn compared to $1.89bn in 2012.

The directors state that this increase was primarily due to R&D expenditure and impairment of product rights.

The profits for 2013 also take account combined non-cash costs of amortisation and and depreciation of $546m.

The group had accumulated profits last year totalling $3.887bn, with shareholder funds totalling $4.4bn.

Numbers employed by the group decreased last year from 12,612 to 11,800 with payroll costs increasing from $908m to $928m. Directors' remuneration stood at €522,000. Last year, the company spent $653m on research and development.

Irish Independent