Boston Scientific revenue €3.8bn

THE Irish operations of Boston Scientific and a number of overseas subsidiaries recorded pre-tax profits last year of $381 million (€282.7m) after revenues topped $5.2 billion (€3.8bn).

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 Registration Office, show that the group returned to profit after increasing revenues by 9% from $4.8bn to $5.2bn in the 12 months to the end of December last.

The holding company’s registered office is at Ballybrit Business Park, Galway, and it also includes the performance of a number of overseas subsidiaries.

The revenues generated by the company account for 67% of Boston Scientific’s global revenues of $7.8bn in 2010. According to the directors’ report, they “are satisfied with the performance of the group to date”.

The pre-tax profit recorded last year comes from a positive swing of $1.448bn after the company recorded a pre-tax loss of $1.067bn in 2009. This was largely attributable to exceptional administrative costs of $1.074bn.

The figures show that the group made an operating profit of $357m and paid interest payments of $146.3m.

However, profits were boosted by $158.6m from a milestone payment from the sale of the group’s vascular intervention and endovascular business in 2006.

The directors state gross profit decreased by $136m to $2.635bn in 2010 and the gross margin fell from 58% in 2009 to 50% in 2010.

The group of companies had accumulated profits totalling $2.132bn last year with shareholder funds totalling $2.6bn.

The filings show that the numbers employed by the group increased marginally last year from 10,555 to 10,975 with payroll costs decreasing by 4.5% from $881.7m to $841.2m.

The accounts show that the company paid $58.8m in taxes last year compared to $41.7m in 2009.

Eight of BSC International Holding Ltd and Subsidiaries are based in Ireland, though there is no breakdown provided for the performance of the BSC’s Irish subsidiaries. Last year, the company spent $475m on research and development compared with $512m in 2009.

The holding company’s other subsidiaries are based in Europe, Asia, Africa and Central and South America.

The accounts show that four of the holding company’s Irish subsidiaries received grants from the IDA totalling €26m last year and this followed grants of €28m in 2009.