Boston Scientific arm loses $1bn

THE HOLDING company for a number of international subsidiaries of medical device maker Boston Scientific last year recorded pretax losses of over $1 billion(€752 million).

According to accounts just filed by BSC International Holding Ltd and Subsidiaries to the Companies’ Office, the company plunged into the red last year after recording pretax profits of $899.4 million in 2008.

The US medical device manufacturer is one of the largest companies in Ireland employing more than 4,500 people here. Earlier this year it announced it was reducing the workforce at its Ballybrit plant in Galway by 175.

The Irish-based holding company’s sales of $4.8 billion last year represent 59 per cent of Boston Scientific’s worldwide revenues of $8.1 billion. The chief factor behind the company’s losses was a $991 million payment in relation to rulings and settlements of lawsuits that Boston Scientific was involved in. This follows a payout of $544.7 million in 2008.

The accounts show that the company’s profits were also hit by interest payments of $257 million relating in part to financing the company’s $27 billion acquisition of the Guidant Corporation in 2006.

The company paid $41.7 million in taxes last year compared with $111.6 million in 2008. The losses last year reduced the company’s accumulated profits to $1.8 billion.