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View printer-friendly version < < backNEW BRUNSWICK, N.J., April 15, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Johnson & Johnson today announced record sales of $16.2 billion for the first quarter of 2008, an increase of 7.7% as compared to the first quarter of 2007. Operational growth was 2.6% and currency contributed 5.1%. Domestic sales were up 2.8%, while international sales increased 13.7%, reflecting operational growth of 2.4% and a positive currency impact of 11.3%.
Net earnings and diluted earnings per share for the first quarter of 2008 were $3.6 billion and $1.26, respectively. The first quarter of 2007 included an after-tax in-process research and development charge of $807 million associated with the acquisition of Conor Medsystems, Inc. Excluding this charge, net earnings for the current quarter and diluted earnings per share represent increases of 6.4% and 8.6%, respectively, as compared to the same period in 2007. * The Company raised its earnings guidance for full-year 2008 to $4.40 - $4.45 per share, which does not include the impact of any in- process research and development charges or other special items.
"We achieved solid earnings in the first quarter which reflects our continued focus on profitable growth for Johnson & Johnson," said William C. Weldon, Chairman and Chief Executive Officer. "Our strategy of being broadly based remains one of the keys to our consistent long-term performance."
Worldwide Consumer sales of $4.1 billion for the first quarter represented a 16.2% increase over the prior year with operational growth of 9.9% and a positive impact from currency of 6.3%. Domestic sales increased 11.7%, while international sales increased 20.2% (8.3% from operations and 11.9% from currency).
Sales results reflect the strong performance of the U.S. launch of ZYRTEC, an over-the-counter allergy treatment; LISTERINE antiseptic mouthrinse and whitening products; Baby Care products; and the skin care lines of NEUTROGENA, CLEAN & CLEAR, and AVEENO.
Worldwide Pharmaceutical sales of $6.4 billion for the first quarter represented an increase over the prior year of 3.3% with an operational decline of .6% and a positive impact from currency of 3.9%. Domestic sales increased .9%, while international sales increased 7.9%, which reflected an operational decline of 3.1% and a positive currency impact of 11.0%.
Sales growth reflects the strong performance of REMICADE, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; VELCADE, a treatment for multiple myeloma; RISPERDAL CONSTA outside the U.S., an antipsychotic medication; and CONCERTA, a treatment for attention deficit hyperactivity disorder.
Growth was negatively impacted by lower sales of PROCRIT, a product for the treatment of anemia, due to a decline in the market. Generic competition in certain markets also impacted sales results for RISPERDAL Oral, an antipsychotic medication, and DURAGESIC, a transdermal patch for chronic pain. In addition, ACIPHEX/PARIET, a proton pump inhibitor for gastrointestinal disorders, was negatively impacted by generic launches of competitive products in this market.
During the quarter, the Company announced that it received an approvable letter from the U.S. Food and Drug Administration (FDA) regarding its New Drug Application for ceftobiprole for the treatment of complicated skin and skin structure infections, including diabetic foot infections.
The Company also submitted a New Drug Application to the FDA for tapentadol hydrochloride immediate release tablets, an investigational oral analgesic for the relief of moderate to severe acute pain. In addition, the Company submitted a Marketing Authorization Application to the European Medicines Agency requesting the approval of golimumab (CNTO 148) as a monthly subcutaneous treatment for adults with rheumatoid arthritis, psoriatic arthritis and ankylosing spondylitis.
Worldwide Medical Devices and Diagnostics sales of $5.7 billion for the first quarter represented a 7.2% increase over the prior year with operational growth of 1.4% and a positive impact from currency of 5.8%. Domestic sales increased .2%, while international sales increased 13.8% (2.6% from operations and 11.2% from currency).
Primary contributors to the operational growth included Vistakon's disposable contact lenses; Ethicon Endo-Surgery's minimally invasive products; LifeScan's blood glucose monitoring and Animas's insulin delivery products. Growth was negatively impacted by lower sales of drug-eluting stents in our Cordis franchise due to new competitive entries as well as a decline in the market versus the prior year.
During the quarter, the Company submitted a Premarket Approval application to the FDA for the SEDASYS System, the first computer-assisted personalized sedation system.
About Johnson & Johnson
Caring for the world one person at a time inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our 119,500 employees at more than 250 Johnson & Johnson companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.
* Net earnings and diluted earnings per share excluding after-tax in- process research and development charges are non-GAAP financial measures and should not be considered replacements for GAAP results. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the accompanying tables to this release.
NOTE TO INVESTORS
Johnson & Johnson will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.
Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. The schedules include supplementary sales data, a condensed consolidated statement of earnings, and sales of key products/franchises.
Additional information on Johnson & Johnson can be found on the Company's website at www.jnj.com.
(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Johnson & Johnson's expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2007. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward- looking statements as a result of new information or future events or developments.)
Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) FIRST QUARTER Percent Change 2008 2007 Total Operations Currency Sales to customers by segment of business Consumer U.S. $1,819 1,629 11.7 % 11.7 - International 2,245 1,867 20.2 8.3 11.9 4,064 3,496 16.2 9.9 6.3 Pharmaceutical U.S. 4,070 4,034 0.9 0.9 - International 2,359 2,187 7.9 (3.1) 11.0 6,429 6,221 3.3 (0.6) 3.9 Med Devices & Diagnostics U.S. 2,588 2,584 0.2 0.2 - International 3,113 2,736 13.8 2.6 11.2 5,701 5,320 7.2 1.4 5.8 U.S. 8,477 8,247 2.8 2.8 - International 7,717 6,790 13.7 2.4 11.3 Worldwide $16,194 15,037 7.7 % 2.6 5.1 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) FIRST QUARTER Percent Change 2008 2007 Total Operations Currency Sales to customers by geographic area U.S. $8,477 8,247 2.8% 2.8 - Europe 4,308 3,812 13.0 0.8 12.2 Western Hemisphere excluding U.S. 1,245 1,046 19.0 6.2 12.8 Asia-Pacific, Africa 2,164 1,932 12.0 3.2 8.8 International 7,717 6,790 13.7 2.4 11.3 Worldwide $16,194 15,037 7.7% 2.6 5.1 Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) FIRST QUARTER 2008 2007 Percent Percent Percent to to Increase Amount Sales Amount Sales (Decrease) Sales to customers $16,194 100.0 $15,037 100.0 7.7 Cost of products sold 4,614 28.5 4,385 29.1 5.2 Selling, marketing and administrative expenses 5,123 31.6 4,802 31.9 6.7 Research expense 1,712 10.6 1,652 11.0 3.6 In-process research & development - - 807 5.4 Interest (income)expense, net 16 0.1 (33) (0.2) Other (income)expense, net (18) (0.1) (228) (1.5) Earnings before provision for taxes on income 4,747 29.3 3,652 24.3 30.0 Provision for taxes on income 1,149 7.1 1,079 7.2 6.5 Net earnings $3,598 22.2 $2,573 17.1 39.8 Net earnings per share (Diluted) $1.26 $0.88 43.2 Average shares outstanding (Diluted) 2,866.3 2,924.3 Effective tax rate 24.2% 29.5% Adjusted earnings before provision for taxes and net earnings Earnings before provision for taxes on income $4,747 29.3 $4,459 (1) 29.7 6.5 Net earnings $3,598 22.2 $3,380 (1) 22.5 6.4 Net earnings per share (Diluted) $1.26 $1.16 (1) 8.6 Effective tax rate 24.2% 24.2% (1) The difference between as reported earnings and as adjusted earnings before provision for taxes, net earnings and earnings per share (diluted) is the exclusion of IPR&D of $807 million with no tax benefit and $0.28 per share, respectively. REPORTED SALES vs. PRIOR PERIOD $MM FIRST QUARTER % Change 2008 2007 Reported Operational(1) Currency PHARMACEUTICAL SEGMENT(2)(3) ACIPHEX/PARIET US 116 159 -27.0% -27.0% - Intl 161 177 -9.0% -19.4% 10.4% WW 277 336 -17.6% -23.1% 5.5% CONCERTA US 224 200 12.0% 12.0% - Intl 66 52 26.9% 14.8% 12.1% WW 290 252 15.1% 12.6% 2.5% DURAGESIC/FENTANYL TRANSDERMAL US 75 116 -35.3% -35.3% - Intl 158 187 -15.5% -24.2% 8.7% WW 233 303 -23.1% -28.5% 5.4% LEVAQUIN/FLOXIN US 474 459 3.3% 3.3% - Intl 22 20 10.0% 4.0% 6.0% WW 496 479 3.5% 3.3% 0.2% PROCRIT/EXPREX US 334 530 -37.0% -37.0% - Intl 295 287 2.8% -9.3% 12.1% WW 629 817 -23.0% -27.2% 4.2% RAZADYNE/REMINYL US 50 51 -2.0% -2.0% - Intl 99 77 28.6% 13.6% 15.0% WW 149 128 16.4% 7.4% 9.0% REMICADE US 676 600 12.7% 12.7% - US Exports(4) 320 131 144.3% 144.3% - Intl 2 0 436.0% 410.7% 25.3% WW 998 731 36.5% 36.5% - RISPERDAL US 582 559 4.1% 4.1% - Intl 227 308 -26.3% -33.6% 7.3% WW 809 867 -6.7% -9.3% 2.6% RISPERDAL CONSTA US 101 101 0.0% 0.0% - Intl 208 160 30.0% 15.8% 14.2% WW 309 261 18.4% 9.7% 8.7% TOPAMAX US 520 501 3.8% 3.8% - Intl 126 109 15.6% 4.2% 11.4% WW 646 610 5.9% 3.9% 2.0% VELCADE US 2 2 0.0% 0.0% - Intl 182 111 64.0% 49.9% 14.1% WW 184 113 62.8% 48.9% 13.9% OTHER US 596 625 -4.6% -4.6% - Intl 813 699 16.3% 2.8% 13.5% WW 1,409 1,324 6.4% -0.7% 7.1% TOTAL PHARMACEUTICAL US 4,070 4,034 0.9% 0.9% - Intl 2,359 2,187 7.9% -3.1% 11.0% WW 6,429 6,221 3.3% -0.6% 3.9% (1) Operational growth excludes the effect of currency (2) Select areas (unaudited) (3) Prior year amounts have been reclassified to conform with current presentation (4) For external purposes, reported as U.S. sales REPORTED SALES vs. PRIOR PERIOD $MM FIRST QUARTER % Change 2008 2007 Reported Operational(1) Currency MEDICAL DEVICES AND DIAGNOSTICS(2)(3) CORDIS(4) US 357 424 -15.8% -15.8% - Intl 478 504 -5.2% -14.7% 9.5% WW 835 928 -10.0% -15.2% 5.2% DEPUY US 694 678 2.4% 2.4% - Intl 559 479 16.7% 5.6% 11.1% WW 1,253 1,157 8.3% 3.7% 4.6% DIABETES CARE US 303 292 3.8% 3.8% - Intl 312 257 21.4% 8.0% 13.4% WW 615 549 12.0% 5.7% 6.3% ETHICON(5) US 341 345 -1.2% -1.2% - Intl 604 529 14.2% 2.9% 11.3% WW 945 874 8.1% 1.3% 6.8% ETHICON ENDO-SURGERY US 429 417 2.9% 2.9% - Intl 574 474 21.1% 8.9% 12.2% WW 1,003 891 12.6% 6.1% 6.5% ORTHO-CLINICAL DIAGNOSTICS(5) US 238 233 2.1% 2.1% - Intl 205 175 17.1% 5.2% 11.9% WW 443 408 8.6% 3.5% 5.1% VISION CARE US 226 195 15.9% 15.9% - Intl 381 318 19.8% 9.2% 10.6% WW 607 513 18.3% 11.7% 6.6% TOTAL MEDICAL DEVICES AND DIAGNOSTICS US 2,588 2,584 0.2% 0.2% - Intl 3,113 2,736 13.8% 2.6% 11.2% WW 5,701 5,320 7.2% 1.4% 5.8% (1) Operational growth excludes the effect of currency (2) Select areas (unaudited) (3) Prior year amounts have been reclassified to conform with current presentation (4) Includes sale of Cypher for Q1 2008 of $169, $231 and $400 million Domestic, International and Worldwide respectively Includes sale of Cypher for Q1 2007 of $236, $292 and $528 million Domestic, International and Worldwide respectively (5) Restated to include portion of sales previously reported in the "Other" category REPORTED SALES vs. PRIOR PERIOD $MM FIRST QUARTER % Change 2008 2007 Reported Operational(1) Currency CONSUMER SEGMENT(2) SKIN CARE US 382 357 7.0% 7.0% - Intl 458 407 12.5% 1.5% 11.0% WW 840 764 9.9% 4.0% 5.9% BABY CARE US 115 109 5.5% 5.5% - Intl 418 338 23.7% 12.9% 10.8% WW 533 447 19.2% 11.1% 8.1% ORAL CARE US 199 203 -2.0% -2.0% - Intl 187 156 19.9% 9.4% 10.5% WW 386 359 7.5% 2.9% 4.6% OTC/NUTRITIONALS US 842 655 28.5% 28.5% - Nutritional Intl 752 602 24.9% 11.8% 13.1% WW 1,594 1,257 26.8% 20.5% 6.3% WOMEN'S HEALTH US 148 163 -9.2% -9.2% - Intl 313 258 21.3% 8.8% 12.5% WW 461 421 9.5% 1.8% 7.7% WOUND CARE / OTHER US 133 142 -6.3% -6.3% - Intl 117 106 10.4% -1.4% 11.8% WW 250 248 0.8% -4.2% 5.0% TOTAL CONSUMER US 1,819 1,629 11.7% 11.7% - Intl 2,245 1,867 20.2% 8.3% 11.9% WW 4,064 3,496 16.2% 9.9% 6.3% (1) Operational growth excludes the effect of currency (2) Select areas (unaudited)
SOURCE Johnson & Johnson
http://www.jnj.com
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