€190m profit for subsidiary of medical devices company

THE main Irish subsidiary of US medical device manufacturer Medtronic last year recorded pre-tax profits of €190.6 million.

According to accounts just filed by Medtronic Vascular Galway Ltd to the Companies Office, they show that the Galway -based firm recorded the profit after increasing revenues almost 10-fold from €76.7m to €753.4m in the 53 weeks to the end of April 30 last.

The company also recorded more than a seven-fold increase in pre-tax profits from €24.5m to €190.6m.

The massive jump in revenues and profits is explained by the figure for fiscal 2009 being for only one month and company acquiring Medtronic Vascular Holdings Ltd’s business and assets in the latter part of fiscal 2009.

The directors state: “Sales for the fiscal year 2010 increased primarily as a result of the launch of certain coronary products worldwide together with the adoption of our endovascular products in our core markets.

“Looking ahead, we expect our business should benefit from continued acceptance of our core products used in the treatment of cardiovascular disease worldwide.

“In addition, we anticipate that during the fiscal year 2011, we will launch additional new products in worldwide markets. These factors will drive the successful development of the company in future years.”

The figures show the Galway-based firm employs 1,859 with 1,855 engaged in production. Staff costs last year totalled €85.9m. The filings show the company had accumulated profits of €186m on April 30 last. No dividend was paid last year.

The accounts show the company’s operating profit last year increased eight- fold from €25.5m to €205.3m. The filings show the operating profits were hit by interest payments of €14.6m.

The accounts show the cost of sales increased to €210.3m, while its operating expenses increased to €354.6m. The accounts include depreciation costs of €7.4m and amortisation costs €14.7m.

The company derives its revenues from sales of healthcare products, principally to group companies in the US and Switzerland. The figures show €640m was generated in sales to companies in the USA and €113m in sales to Switzerland.