Firm reverses plan to cut jobs

A Cork-based medical firm that last year announced it was to cut 142 jobs has reversed its decision.

The US-owned Stryker Ireland Ltd cancelled the restructuring programme “following the review of the company’s operations and the winning of a new business contract”.

The restructuring programme announced in May last year was to be implemented this year and completed in 2013.

However, cancellation of the programme is confirmed in new accounts by Stryker Ireland Ltd that show that pre-tax profits increased by 101%, from €124.2m to €250.4m.

This followed revenues increasing by 46%, from €351.7m to €515m, in the 12 months to the end of December last.

According to the directors’ report, “the company had strong growth in the period under review, with an increase in sales of 46%, reflecting the impact of the operations acquired from Benoist Girard SAS, a related Stryker entity in late 2010”.

They added: “Margins have increased on the prior year and profit before tax significantly increased on 2010.”

Stryker operates two plants in Ireland: One at Carrigtwohill, Co Cork, and an orthopaedics plant at Raheen Business Park in Limerick.

The figures show that staff numbers last year increased from 680 to 700 with staff costs increasing by 12% from €39.3m to €44m.

The profit last year takes account of non-cash depreciation and amortisation costs of €5.4m.

The figures show that Sryker’s R&D spend more than doubled last year, going from €13.8m to €30.2m. According to the report, “the directors are committed to reducing the lead times in bringing innovative new products to market as part of a global initiative”.

The firm’s accumulated profits at the end of December last stood at €365.1m.

The sharp increase in pre-tax profits arose from a marginal increase in cost of sales, from €202.3m to €219.3m, while administrative expenses dropped from €11.2m to €12.8m.

The figures show that the firm’s operating profit more than doubled, from €124.3m to €252.5m. Net interest payable of €2.1m reduced the firm’s profits to €250.4m

Stryker Ireland last year paid corporation tax totalling €31.1m compared to €12.5m in 2010.

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