Company Report: Seagate Technology
Seagate Technology operates a large advanced fabrication plant in Londonderry which manufactures thin film recording head wafers for use in electronic equipment. Seagate Technology (Ireland) is a wholly owned subsidiary of a parent company registered in the Cayman Islands.
In the year to June 2016, the value of sales decreased by 15%. The Seagate plant in Northern Ireland manufactures advanced components, read and write heads for hard discs, most of which are consigned to Malaysia and Thailand for incorporation in the assembly of the final products.
The fall in the value of sales (measured in US dollars) has been reflected in the value of operating and pre-tax profits.
Operating profits are stated after the deduction of $47m (£36m)to offset depreciation of property and equipment and making a contribution to research and development costs of $39m (£30m).
In addition, recently there was a charge of $4.5m (£3.4m) in respect of reorganisation costs in rationalising manufacturing and information systems and other support functions.
Costs in the accounts to June 2016 include the anticipated redundancy costs of just under $4m (£3m) for a redundancy programme which begun prior to June 2016. The company is one of Northern Ireland’s larger employers, averaging 1,404 people in 2016. Staff costs, measured in US dollars were nearly $82.5m (£63m), or 2% lower than in the previous year.
Seagate Technology (Ireland) does not usually make any dividend payments to shareholders.
Retained post-tax profits, as adjusted to reflect net comprehensive income, are reflected in the changing value of shareholders’ funds.