This article is from page 13 of the 2006-09-14 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 13 JPG
SPENDING of €11.9 million on environmental works and €8.9 million on a redundancy programme contributed to a 60 per cent drop in profits at Roche Ireland last year.
Accounts filed to the Companies Office show that Roche Ireland, a subsidiary of the Swiss pharmaceutical giant Roche, returned a profit of €6 million to the end of 2005, compared to the €14 million profit secured after tax in 2004.
The drop in profits at the Clarecastle plant is explained by the €20.8 million spent on environmental works and redundancy payments last year to 35 workers let go. The director’s statement attached to the accounts state that the “directors have increased the company’s provision for obligations associated with its environmental development programme by €11,950,000 in the financial year. This is based on the conclusions of a number of on-site studies indicating soil stabilisation remediation requirements”.
It goes on: “In September 2005, the company announced that, as part of a group strategy to restructure its global manufacturing network, it would be closing its d, I Acid production plant during 2006. The above restructuring charge relates primarily to the costs of a redundancy programme associated with this closure.”
The accounts show that Roche enjoyed a turnover of €118 million in 2005 compared to a turnover of €124 million in 2004, while operating costs also dropped from €111 million in 2005 to €106 million in 2004. But, accumulated profits stand at €99 million.