New accounts show profits rose at Derry's Seagate last year

Pre-tax profits rose at Seagate last year, new accounts show.
Pre-tax profits rose at Seagate last year, new accounts show.

DERRY-based Seagate Technology has reported rising profits and turnover just days after it emerged that more than 100 jobs are set to go at the plant.

Accounts for the Irish business of the US data storage manufacturer reveal turnover rose by 17 per cent to $220 million (£178m) in the year to July 1 2022, the company’s best performance since 2014.

Seagate Technology (Ireland), which is legally registered as a company in the Cayman Islands, reported a pre-tax profit of $15.9m (£12.9m) for 2022, which was 10 per cent up on 2021’s results.

However, a tax credit of $4.4m (£3.6m) ultimately left Seagate’s Derry operation with a bottom line profit of $20.3m (£16.4m).

The Springtown operation, originally set up in Derry in 1993, makes recording heads for use in data storage media products which are sold by the Seagate group.

In the latest annual report, published by Companies House, the directors of Seagate Technology (Ireland) said the rise in turnover was due to increased demand for read-write heads globally.

The same report reveals that Seagate’s workforce grew by 4 per cent in the year to July 2022, with 64 people joining the Derry workforce.

However, since the end of the 2022 financial period, Seagate has embarked on restructuring programmes in response to weaker financial data.

In October 2022, the parent group announced plans to cut its global workforce of 40,000 by around 3,000 employees or 8 per cent.

Last month, the group said further savings would need to be found.

Despite speculation that hundreds of jobs could go in Derry, the redundancies are understood to be in the low three figures, reportedly around 116.