Big increase in profits at Boston Scientific

Accounts for the Irish operations of Boston Scientific and a number of its overseas subsidiaries show a pre-tax profit last year of $1.4 billion (€1bn).

The US medical device manufacturer is one of the largest companies in Ireland employing more than 4,500 people here. Its Irish operations represents almost 20 per cent of its global workforce of 24,000.

According to accounts for BSC International Holding Ltd and Subsidiaries filed with the Companies Office, the group recorded the $1.4 billion profit after increasing revenues by 2 per cent from $5.25 billion to $5.37 billion in the 12 months to the end of December last.

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

The BSC International accounts show it increased pre-tax profits last year by 272 per cent from $381.2 million to $1.4 billion.

A significant factor behind the sharp rise was a $660 million profit listed in the accounts as “the sale of operations”.

Underlining the investment by Boston Scientific in Ireland, the accounts show that three of the group’s seven Irish subsidiaries have received a total of €28 million in grants from the IDA. No breakdown is provided in relation to the performance of Boston Scientific’s Irish subsidiaries.

The directors state in the accounts: “The increase in net sales is primarily due to the growth in our Wallflex line of stents and the peripheral interventions business. This increase was partly offset by the slight decrease in demand for certain cardiac rhythm management and international cardiology products.”

The profits for 2011 also take account of non-cash costs of amortisation of intangible fixed assets of $429.7 million and depreciation of fixed assets of $79.7 million.

The figures show that the group increased its operating profit by 154 per cent from $357 million to $909 million.

The group’s gross profit increased by $499 million from $2.634 billion to $3.133 billion in 2011.

The accounts show the company paid $64.9 million in taxes last year compared to $68.5 million in 2010. Last year it spent $524 million on research and development. No dividend was paid last year.