Zimmer makes €34m pre-tax profit

US MEDICAL device manufacturer Zimmer recorded pre-tax profits of $46.1 million (€34.4m) in its first full year of operations in Ireland, new figures show.

Zimmer Orthopedics Manufacturing began operations in 2009 in the Shannon Free Zone, committing to provide 250 jobs in five years.

Start-up costs of $8.7m resulted in the company recording a pre-tax loss of $7.7m in its first year (last year, it incurred further start-up costs of $6.9m) on revenues of $5.9m, though it only began manufacturing in September 2009.

The directors state that since the incorporation of the company it has been in a start-up phase and significant capital and operating expenditure has been incurred as part of the development phase of the company.

However, accounts just filed with the Companies Office show that the company recorded a pre-tax profit of $46.1m on revenues of $92.6m in the 12 months to the end of December last. The profit for 2010 takes account of non-cash depreciation costs of $4.7m. A gross profit of $75.4m was also generated. The company said it is on track to meet its initial commitment to create the 250 jobs in five years.

Last year, the number of jobs at the company more than doubled from 57 to 116 at its Shannon base, where the Zimmer subsidiary manufactures orthopedic femoral knees.

During 2009 and 2010, the company received total grant payments from Shannon Development of €2.4m.