Report: Boston Scientific to shutter Florida plant, laying off 1,400

November 23, 2009 by MassDevice staff

Boston Scientific Corp. plans to shutter a plant in Doral, Fla., laying off 1,400 workers as it moves the operation to Costa Rica.

Boston Scientific Corp. (NYSE:BSX) plans to shutter a plant in Doral, Fla., laying off 1,400 workers, The Miami Herald reported.

The Natick, Mass.-based medical devices giant is relocating the Doral operation to a vacant facility in Costa Rica beginning next year, according to the newspaper. The move is slated to finish in 2012.

Boston Scientific declined to comment on the move, according to the Herald.

Boston Scientific initially posted a $200 million third-quarter profit on $2.03 billion in sales during the three months ended Sept. 30. The gain compares favorably with year-ago results, when the company lost $64 million on sales of $1.98 billion and marked its best quarterly profit since posting a $111 bottom line in June 2007.

But the profit swung to a loss after the company settled a case with the U.S. Justice Dept. for $296 million, related to its Guidant acquisition and the recall of two of its implantable cardiac defibrillators. The settlement meant a $294 million charge hit the books for BSX's 2009 third quarter, reversing the $200 million in Q3 profits into a $94 million net loss. That prompted the company to lower its full-year earnings-per-share guidance buy 20 cents, from $.043-$.048 per share to $0.23-$0.28 per share.