US orthopaedic device manufacturer Zimmer increases Irish profits by 20%

Pre-tax profits at the Irish arm of US orthopaedic device manufacturer, Zimmer last year increased by 20% to $140m (€130m).

Zimmer’s Irish unit, based in Shannon, specialises in constructing artificial knees and revenues increased by 10% from $250m to $275m in the 12 months to the end of December last.

Zimmer Orthopedics Manufacturing Ltd commenced operations here in 2009 and has grown the number of employees at its base in the Shannon Free Zone to 249.

The accounts just filed with the Companies Office disclose that the firm paid a dividend of $100m to its parent last year.

The directors report states that the firm continued to grow its output during 2015 and earlier this year, Zimmer announced that it is to establish a second plant in Ireland, at Oranmore near Galway, with the creation of an additional 250 jobs.

The accounts show that average headcount increased by 8% with capital investment increasing by 27%.

The firm’s directors also point out that the company will continue to increase output in 2015 and expand its capabilities on the site.

Zimmer designs, develops, manufactures and markets orthopaedic reconstructive, spinal and trauma devices, dental implants, and related surgical products. The profit for 2014 takes account of non-cash depreciation costs of $7.4m.

The Shannon plant manufactures orthopaedic femoral knees and the figures show that staff costs for 2014 increased from $16.2m to $17.8m.

Those costs include remuneration for the firm’s three directors, Adrian Furey, Fiona Sullivan and Guillaume Genin, which decreased last year from $489,751 to $485,941.

The figures also show that at the end of December last, the company had $127m in accumulated profits.

The company’s cost of sales last year totalled $70.9m with the company recording a gross profit of $204.6m.

Other operating expenses totalled $64m while the firm’s spend on R&D during the year totalled $1m. The firm last year paid tax of $17.52m. A breakdown of the company’s revenues show that $171.6m was generated in ‘rest of world’ while the real growth took place in Europe, increasing from $79m to €103m.

Zimmer has operations in more than 25 countries and sells products in more than 100 countries. Zimmer’s worldwide sales were $4.7bn and the company employs 8,500 worldwide.