Profits grew at Stryker before cuts

THE US medical devices company that announced 142 job cuts in Cork earlier this year increased its pretax profits to €124.2 million last year, new figures show.

In May of this year, Stryker confirmed the job losses after announcing it was consolidating its medical instruments and orthopaedic plants, which are located at the IDA Industrial Estate at Carrigtwohill, into one plant as part of a restructuring programme.

Accounts just filed with the Companies Office show that Stryker Ireland Ltd’s revenues increased by 1 per cent from €347.8 million to €351.7 million in the 12 months to the end of December last.

As a result, pretax profits increased from €122.1 million in 2009 to €124.2 million last year.

Stryker, with its headquarters at Kalamazoo in Michigan, employs 700 people at the Carrigtwohill plants and a further 500 at an orthopaedics plant at Raheen Business Park in Limerick.

The returns for 2010 confirm that a dividend of €25 million was paid last year, down from a figure of €57.2 million in 2009.

The company said the 142 employees affected will be given the opportunity to re-skill and transfer to other positions within the Irish Stryker operation.

Stryker expects 60 jobs to be created over the next four years when the Carrigtwohill facility begins manufacturing for the company’s endoscopy division.

According to the directors’ report, “the company had strong growth in the period under review with volume growth on continuing operations of 18 per cent”.

The profit includes a non-cash depreciation cost of €5.4 million. The figures show that the company had €145.9 million in accumulated profits at the end of December.

During 2010 the numbers employed by the company increased from 613 to 680, with the company’s staff costs increasing by 10 per cent from €35.7 million to €39.3 million.

The company’s cost of sales increased from €197 million to €202.3 million.