Profits at Galway-based CF Tooling rise by 21%

PROFITS AT manufacturing group CF Tooling increased by 21 per cent last year to almost €5 million, according to the latest figures.

Galway-based CF manufactures server racks, computer casings and other products for high-tech multinationals. Its key clients include IBM and EMC, both of which have operations in the Republic.

Accounts for 2008 filed by CF with the Companies’ Registration Office show that sales in Ireland grew less than 3 per cent that year to €35 million from €34 million in 2007.

Operating profits were up almost 25 per cent at €5 million in 2008 from €4.1 million the previous year.

The notes to the accounts show that a €680,000 profit on foreign currency dealings and a €230,000 fall in depreciation charges to €1.7 million helped to lift this figure. Pretax profits grew 20.9 per cent to €4.8 million from €3.9 million.

CF ended the year with a total of €20.3 million in retained profits, a 31 per cent increase on the €15.6 million it had retained at the end of 2007. Shareholders’ funds on December 31st were €21 million, up from €16.4 million 12 months previously.

Galway businessman John Flaherty owns the company and is its chief executive.

The business has factories in Athenry, Galway, the Czech Republic and the Philippines, from where it also supplies clients such as IBM and EMC.

Last year it rescued Collinstown, Co Westmeath car parts manufacturer Iralco from closure in a €10 million deal. It employs more than 1,300 people worldwide.

Also last year, the company invested €4.3 million in driver training centres operated by Sim2Learn, which teaches a system that claims to cut van and truck fleet fuel costs by up to 10 per cent.

In autumn 2008, it opened an extension to its Czech plant, which is based near Prague. At the time it said that the facility generated sales of about €20 million a year.

More recently, CF announced plans to employ a further 250 people on the manufacture of wind turbines which can generate electricity at low wind speeds.

At the time, Mr Flaherty said that the venture was the first involving products that the company has designed itself. It is planning to invest €20 million in the business.

He is hoping to sell the turbines to both domestic users and farmers.

CF Tooling has been in business for 20 years and began operating as a contract manufacturer.

Mr Flaherty, winner of the Entrepreneur of the Year award last year, has consistently argued that the Republic needs to do more to build up its manufacturing base, which he argues is the best way to create wealth and jobs for the country.