Pre-tax profits went up 63% at Seagate Technology in Londonderry after around 300 jobs were shed at the business, its latest accounts have shown.
In its accounts for the year to June 28 2024, the US-owned company said turnover rose 20% from $164.8m to $198.5m.
There was also a steep increase in its pre-tax profits, from $16.4m to $26.7m – a jump of 63%.
At $197.4m, the lion’s share of turnover was generated in Thailand, with $1m generated in the US.
Over the year, it had employed 1,310 people in the manufacture and development of parts for data storage products – down from 1,639 the year before.
The accounts show there were 321 manufacturing jobs cut, with eight jobs going from administration.
As a result of the job cuts, the company’s pay bill dropped from $88.5m to $79.4m, the accounts said.
In a strategic report filed with the accounts, the Cayman Islands-registered company said it had continued to invest in its manufacturing capability over the year, “employing the very latest product and process technologies”.
Operating profit rose from $11.6m to $16.1m, an increase of nearly 40%, while profit for the financial year went from $13.9m to $20.8m, an increase of nearly 50%.
The report said: “Turnover from continuing operations and operating profit increased by 20% and 39% respectively during the year, primarily due to improvement in data storage industry end-market demand which increased demand for read-write heads.
“Profit for the financial year has increased by 49% as a result of this increased demand, as well as increased interest receivable from another group company.”
Seagate Technology shed the 300 staff from its Londonderry operation as part of a restructuring in 2023. In accounts filed last year, it said the job cuts had been implement by the end of the first quarter in 2024.
The latest accounts note restructuring/redundancy costs of $182,000, compared to $17.2m the year before.
It states that the costs were generated in reorganisation as part of the Seagate Group’s restructuring plans, in order to reduce its cost structure to better align operational needs to current economic conditions while continuing to support the long-term business strategy.”
But it added that restructuring costs were reimbursed by another group company.