PRE-TAX profits at the main Irish arm of global semiconductor manufacturer Analog Devices last year more than doubled to $1.738billion (€1.62bn).
New accounts show that the Limerick-based Analog Devices International UC recorded an increase in profits after revenues rose by 6 per cent from $7.72bn to $8.18bn in the 12 months to the end of October 28 last year.
In May 2023, the firm announced plans to build a €630m ($685m) facility in County Limerick, adding 600 jobs to its Irish workforce.
The investment at its European regional headquarters in the Raheen Business Park involves the construction of a 45,000sq/ft research, development, and manufacturing facility.
Analog directors state that the results for 2023 “were in line with expectations”.
The directors said dividends of $2.93bn were paid during the year with a further dividend of $250m declared but unpaid at year end.
In a post balance sheet event, the company paid further dividends of $1.47bn to Analog Devices Limerick UC.
Numbers employed increased by 13 per cent from 1,435 to 1,626 during 2023.
The chief factor behind the jump in pre-tax profits was due to the increase in revenues and a sharp decrease in non-cash impairment losses in 2023 – $70.2m last year compared to $613.7m in 2022.
The directors state that gross margin increased by 2.7 per cent to 67.38pc, primarily as a result of favourable product mix and higher factory utilisation due to increased customer demand.
The company recorded post tax profits of $1.48bn after incurring a corporation tax charge of $257.5m.
Sounding an upbeat note, the directors state that “our diversified business model combined with our leading technology portfolio position the company to deliver sustainable long-term growth in the years ahead”.
The directors state that the company has a purpose-built European Research and Development Building at the Limerick campus and the R&D spend last year totalled $615.25m compared to $757.86m during 2022.
Numbers employed by the company last year increased from 1,435 to 1,626, made up of 754 in manufacturing, 549 in engineering, 264 in marketing, and 59 in administration.
Staff costs rose from €$186.07m to $192.27m and the pay included share based payments of $16.34m.
Directors’ pay totalled $3.24m made up of emoluments of $1532m, $440,000 in share option gains, $1.2m on long term incentive scheme, and $59,000 in pension contributions.
At the end of December last year, the firm had shareholder funds of $29.66bn. The company’s cash funds declined from $392.73m to $163m.
