US devices firm soars after just 3 years

A US medical device manufacturer has become one of the most profitable firms in the Shannon Free Zone within three years of setting up in the industrial estate.

Zimmer Orthopedics Manufacturing Ltd commenced operations in Shannon in 2009 and new accounts show that the firm last year recorded pre-tax profits of $79.5m (€61.3m).

This represents a 72% increase on the pre-tax profits of $46.1m in 2010.

The firm achieved the sharp rise in profits last year after revenues increased by 70% from $92.6m to $157m.

The strength of the firm’s performance to date allowed the firm make a $40m dividend to its parent since the end of December last.

The principle activity of the firm is the manufacture of orthopedic femoral knees and the numbers employed by the firm last year increased from 115 to 165.

According to the directors’ report “the company continues to build up its supply chain by delivering products to a number of jurisdictions worldwide; 2011 has seen increases in sales by 70%, average headcount by 42% and capital investment by 8%”.

The directors state that the company’s inter-company loan of $33m was repaid in full during 2011.

The profit takes account of start-up and capacity costs last year of $4.1m with research and development costs totalling $896,953.

The firm’s cost of sales last year totalled $29.2m resulting in a gross profit of $128.4m.

The company’s accumulated profits last year stood at $93m. The firm’s shareholder funds last year totalled $98.2m.

The figures show that the 77% or $122.9m of the firm’s revenues were generated in the rest of the world with the remaining generated in Europe.

On the firm’s “future developments” the directors state that “the company will continue to increase output in 2012 and expand its capabilities on the site”.