Stryker’s Irish division maintains profitability

The Irish arm of US medical device manufacturer Stryker remained in profit last year after returning to the black in 2013, to record pre-tax profits of €87m.

Stryker Ireland is due to shortly make a jobs announcement at its Cork base and its latest accounts show that it recorded pre-tax profits of €87.2m in 2013 following a pre-tax loss of €98.8m in 2012 — a positive swing of €186m.

The firm made a return to profit in 2013 in spite of an exceptional cost of €159.9m in respect of a recall of hip stems and this followed an exceptional cost of €280m in 2012.

Numbers employed at Stryker rose from 747 to 853 in 2013.

According to the directors’ report, “revenue in the year has increased by 16% as a result of changes in demand and distributor activity.

“At the same time, cost of sales and operating costs have remained relatively fixed,” said the report. “Therefore, profit before exceptional items has increased by 37%.”

The directors further state that the exceptional charge of €159.9m was recorded on a voluntary recall of the modular neck hip stem.

The report states: “With the exception of the exceptional charge noted, the directors are satisfied with the performance of the company. Stryker Ireland continues to trade profitably.”

The figures show Strkyer increased its R&D spend in 2013 going from €28.8m to €33m. Accumulated profits at the end of December 2013 increased from €277.65m to €354.95m.

The firm paid a dividend of €50,000 in 2013 and €50,000 in 2012. The accounts disclose that the firm has received grants of €5.28m from the IDA “which may be revoked, cancelled or abated in certain circumstances”.