$1.4bn profit for Boston Scientific

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

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

Accounts for BSC International Holding Ltd and Subsidiaries, just filed with the Companies Office, show the group recorded the $1.4bn profit after increasing revenues by 2% from $5.25bn to $5.37bn in the 12 months to the end of December last.

The group increased pre-tax profits last year by 272% from $381.2m to $1.4bn and a significant factor behind the sharp rise in profits was $660m from the sale of operations.

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 to date”.

The numbers employed in Ireland account for almost 20% of Boston Scientific’s global workforce of 24,000. The accounts show three of the group’s seven Irish subsidiaries have received a total of €28m in grants from the IDA “which may be revoked, cancelled, or abated in certain circumstances”.

No breakdown is provided in relation to 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 account of non-cash costs of amortisation of intangible fixed assets of $429.7m and depreciation of fixed assets of $79.7m.

The group increased its operating profit by 154% from $357m to $909m. Gross profit increased by $499m from $2.634bn to $3.133bn in 2011.

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

The numbers employed increased last year from 10,976 to 11,806, with payroll costs increasing by 11% from $841m to $938m.

The accounts show that the company paid $64.9m in taxes last year compared to $68.5m in 2010. Last year, $524m was spent on research and development.

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