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View printer-friendly version < < backNEW BRUNSWICK, N.J., Jan 26, 2010 /PRNewswire via COMTEX News Network/ -- Johnson & Johnson today announced sales of $16.6 billion for the fourth quarter of 2009, an increase of 9.0% as compared to the fourth quarter of 2008. Operational growth was 4.5% and currency contributed 4.5%. Domestic sales were up 2.6%, while international sales increased 15.6%, reflecting operational growth of 6.4% and a positive currency impact of 9.2%. Worldwide sales for the full-year 2009 were $61.9 billion, a decrease of 2.9% over 2008. Operational results declined 0.3% and the negative impact of currency was 2.6%. Domestic sales declined 4.4%, while international sales declined 1.4%, reflecting operational growth of 3.9% and a negative currency impact of 5.3%.
Net earnings and diluted earnings per share for the fourth quarter of 2009 were $2.2 billion and $0.79 respectively. Fourth quarter 2009 net earnings included an after-tax restructuring charge of $852 million and an after-tax gain of $212 million representing the net impact of litigation matters. Fourth quarter 2008 net earnings included special items related to in-process research and development charges of $141 million with no tax benefit and an after-tax gain of $229 million representing the net impact of litigation matters. Excluding these special items, net earnings for the current quarter were $2.8 billion and diluted earnings per share were $1.02, representing increases of 8.4% and 8.5%, respectively, as compared to the same period in 2008.*
Net earnings and diluted earnings per share for the full-year 2009 were $12.3 billion and $4.40. Full-year 2009 net earnings included an after-tax restructuring charge of $852 million and an after-tax gain of $212 million representing the net impact of litigation matters. Full-year 2008 net earnings included special items related to in-process research and development charges of $181 million with no tax benefit and an after-tax gain of $229 million representing the net impact of litigation matters. Excluding these special items, net earnings for the full-year 2009 were $12.9 billion. Diluted earnings per share for the full-year 2009 were $4.63, representing an increase of 1.8%, as compared with the full-year in 2008.*
The Company announced earnings guidance for full-year 2010 of $4.85 to $4.95 per share, which excludes the impact of special items.
"In a year of tremendous challenge, we maintained our long-term focus while delivering solid results -- a great tribute to the employees of Johnson & Johnson," said William C. Weldon, Chairman and Chief Executive Officer. "We made important investments in acquisitions, strategic partnerships and launches of recently-approved innovative products while preserving our financial flexibility to continue to invest in innovation. This positions us well for continued leadership and growth in global health care as we enter 2010."
Worldwide Consumer sales of $15.8 billion for the full-year 2009 represented a decrease of 1.6% over the prior year with operational growth of 2.0% and a negative currency impact of 3.6%. Domestic sales decreased 1.4%; international sales decreased 1.7%, which reflected operational growth of 4.7% and a negative currency impact of 6.4%.
Primary contributors to operational growth included NEUTROGENA®, AVEENO® and the Dabao skin care products; international sales of LISTERINE® antiseptic mouthrinse; SPLENDA® No Calorie Sweetener; and sales from the acquisition of Vania Expansion SNC. Sales growth was negatively impacted due to the initial build of inventory by the trade related to the 2008 launch of Zyrtec.
Worldwide Pharmaceutical sales of $22.5 billion for the full-year 2009 represented a decrease of 8.3% versus the prior year with an operational decline of 6.1% and a negative impact from currency of 2.2%. Domestic sales decreased 12.1%; international sales decreased 2.6%, which reflected an operational increase of 3.0% and a negative currency impact of 5.6%.
Products with strong operational growth included REMICADE® (infliximab), a biologic approved for the treatment of a number of immune mediated inflammatory diseases; PREZISTA® (darunavir), a treatment for HIV; VELCADE® (bortezomib), a treatment for multiple myeloma; and RISPERDAL® CONSTA® (risperidone) Long-Acting Treatment, an antipsychotic medication.
Sales results of TOPAMAX® (topiramate), an antiepileptic and a treatment for migraine, and RISPERDAL® (risperidone), an antipsychotic medication, were negatively impacted by generic competition.
During the quarter, the Company submitted a New Drug Application to the U.S. Food and Drug Administration (FDA) for tapentadol extended release tablets, an investigational oral analgesic for the management of moderate to severe chronic pain in patients 18 years of age or older. In addition, the Company submitted a Marketing Authorization Application to the European Medicines Agency for paliperidone palmitate, a once-monthly atypical antipsychotic intramuscular injection for the treatment of adults with schizophrenia.
Worldwide Medical Devices and Diagnostics sales of $23.6 billion for the full-year 2009 represented an increase of 1.9% versus the prior year with an operational increase of 4.2% and a negative impact from currency of 2.3%. Domestic sales increased 4.5%; international sales decreased 0.2%, which reflected an operational increase of 4.0% and a negative currency impact of 4.2%.
Primary contributors to operational growth included Ethicon's surgical care and aesthetics products; DePuy's orthopaedic joint reconstruction, spine, and sports medicine businesses; Ethicon Endo-Surgery's minimally invasive products; and Ortho-Clinical Diagnostics' professional products. This growth was partially offset by lower sales in the Cordis franchise, reflecting continued competition in the drug-eluting stent market.
During the quarter, the Company entered into a definitive agreement to acquire Acclarent, Inc., a privately held medical technology company dedicated to designing, developing and commercializing devices that address conditions affecting the ear, nose and throat. On January 20, 2010, the acquisition of Acclarent was completed. Also in the quarter, the Company completed the acquisitions of Finsbury Orthopaedics Limited, a privately held UK-based manufacturer and global distributor of orthopaedic implants, and Gloster Europe, a privately held developer of innovative disinfection processes and technologies to prevent healthcare-acquired infections.
The Company also announced that it had received FDA clearance for marketing the CARTO® 3 System, the most advanced three-dimensional imaging technology for use by electrophysiologists in treating cardiac arrhythmias, commonly referred to as irregular heart rhythms.
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 115,000 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 special items, such as after-tax restructuring charges, the net impact of litigation gains and in-process research and development charges, are non-GAAP financial measures and should not be considered replacements for GAAP results. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Investor Relations section of the Company's website at www.jnj.com.
NOTE TO INVESTORS
Johnson & Johnson will conduct a meeting with members of the investment community to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the meeting 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, sales of key products/franchises and a pharmaceutical pipeline of selected compounds in late stage development. 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 28, 2008. 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) FOURTH QUARTER*
----------- ---------------
Percent Change
-----------------------------
2009 2008 Total Operations Currency
---- ---- ----- ---------- --------
Sales to
customers by
segment of
business
Consumer
U.S. $1,712 1,655 3.4% 3.4 -
International 2,537 2,200 15.3 6.5 8.8
------------- ----- ----- ---- --- ---
4,249 3,855 10.2 5.2 5.0
----- ----- ---- --- ---
Pharmaceutical
U.S. 3,338 3,430 (2.7) (2.7) -
International 2,655 2,255 17.7 8.0 9.7
------------- ----- ----- ---- --- ---
5,993 5,685 5.4 1.6 3.8
----- ----- --- --- ---
Med Devices &
Diagnostics
U.S. 2,817 2,582 9.1 9.1 -
International 3,492 3,060 14.1 4.9 9.2
------------- ----- ----- ---- --- ---
6,309 5,642 11.8 6.8 5.0
----- ----- ---- --- ---
U.S. 7,867 7,667 2.6 2.6 -
International 8,684 7,515 15.6 6.4 9.2
------------- ----- ----- ---- --- ---
Worldwide $16,551 15,182 9.0% 4.5 4.5
--------- ------- ------ --- --- ---
(Unaudited;
Dollars in
Millions) TWELVE MONTHS**
----------- ---------------
Percent Change
------------------------------
2009 2008 Total Operations Currency
---- ---- ----- ---------- --------
Sales to
customers by
segment of
business
Consumer
U.S. $6,837 6,937 (1.4)% (1.4) -
International 8,966 9,117 (1.7) 4.7 (6.4)
------------- ----- ----- ---- --- ----
15,803 16,054 (1.6) 2.0 (3.6)
------ ------ ---- --- ----
Pharmaceutical
U.S. 13,041 14,831 (12.1) (12.1) -
International 9,479 9,736 (2.6) 3.0 (5.6)
------------- ----- ----- ---- --- ----
22,520 24,567 (8.3) (6.1) (2.2)
------ ------ ---- ---- ----
Med Devices &
Diagnostics
U.S. 11,011 10,541 4.5 4.5 -
International 12,563 12,585 (0.2) 4.0 (4.2)
------------- ------ ------ ---- --- ----
23,574 23,126 1.9 4.2 (2.3)
------ ------ --- --- ----
U.S. 30,889 32,309 (4.4) (4.4) -
International 31,008 31,438 (1.4) 3.9 (5.3)
------------- ------ ------ ---- --- ----
Worldwide $61,897 63,747 (2.9)% (0.3) (2.6)
--------- ------- ------ ----- ---- ----
*Fourth Quarter 2009 includes fourteen weeks and 2008 includes
thirteen weeks.
**Twelve Months 2009 includes fifty-three weeks and 2008 includes
fifty-two weeks.
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited;
Dollars in
Millions) FOURTH QUARTER*
----------- ---------------
Percent Change
-----------------------------
2009 2008 Total Operations Currency
---- ---- ----- ---------- --------
Sales to customers
by geographic area
U.S. $7,867 7,667 2.6% 2.6 -
---- ------ ----- --- --- ---
Europe 4,412 3,851 14.6 5.1 9.5
Western Hemisphere
excluding U.S. 1,541 1,187 29.8 19.0 10.8
Asia-Pacific,
Africa 2,731 2,477 10.3 2.3 8.0
------------- ----- ----- ---- --- ---
International 8,684 7,515 15.6 6.4 9.2
------------- ----- ----- ---- --- ---
Worldwide $16,551 15,182 9.0% 4.5 4.5
--------- ------- ------ --- --- ---
(Unaudited;
Dollars in
Millions) TWELVE MONTHS**
----------- ---------------
Percent Change
--------------
2009 2008 Total Operations Currency
---- ---- ----- ---------- --------
Sales to
customers by
geographic area
U.S. $30,889 32,309 (4.4)% (4.4) -
---- ------- ------ ----- ---- ---
Europe 15,934 16,782 (5.1) 2.1 (7.2)
Western
Hemisphere
excluding U.S. 5,156 5,173 (0.3) 8.8 (9.1)
Asia-Pacific,
Africa 9,918 9,483 4.6 4.4 0.2
------------- ----- ----- --- --- ---
International 31,008 31,438 (1.4) 3.9 (5.3)
------------- ------ ------ ---- --- ----
Worldwide $61,897 63,747 (2.9)% (0.3) (2.6)
--------- ------- ------ ----- ---- ----
*Fourth Quarter 2009 includes fourteen weeks and 2008 includes
thirteen weeks.
**Twelve Months 2009 includes fifty-three weeks and 2008 includes
fifty-two weeks.
Johnson & Johnson and Subsidiaries
-----------------------------------
Condensed Consolidated Statement of Earnings
----------------- --------
(Unaudited; in
Millions Except
Per Share
Figures) FOURTH QUARTER
----------------
2009 2008
---- ---- Percent
Percent Percent Increase
Amount to Sales Amount to Sales (Decrease)
----------------- ------ -------- ------ -------- ---------
Sales to
customers $16,551 100.0 $15,182 100.0 9.0
---------- ------- ----- ------- ----- ---
Cost of products
sold 5,312 32.1 4,372 28.8 21.5
Selling,
marketing and
administrative
expenses 5,629 34.0 5,665 37.3 (0.6)
Research expense 2,213 13.4 2,108 13.9 5.0
In-process
research &
development
(IPR&D) - - 141 0.9
Interest
(income)expense,
net 81 0.5 17 0.1
Other
(income)expense,
net (361) (2.2) (638) (4.2)
Restructuring
expense 1,073 6.5 - -
------------- ----- --- - - -----
Earnings before
provision for
taxes on income 2,604 15.7 3,517 23.2 (26.0)
Provision for
taxes on income 398 2.4 803 5.3 (50.4)
---------------- --- --- --- --- -----
Net earnings $2,206 13.3 $2,714 17.9 (18.7)
------------ ------ ---- ------ ---- -----
Net earnings per
share (Diluted) $0.79 $0.97 (18.6)
Average shares
outstanding
(Diluted) 2,796.5 2,801.6
Effective tax
rate 15.3% 22.8%
-----------------
Adjusted earnings
before provision
for taxes and
net earnings
Earnings before
provision for
taxes on
income $3,404 (1) 20.6 $3,279 (2) 21.6 3.8
Net earnings $2,846 (1) 17.2 $2,626 (2) 17.3 8.4
Net earnings per
share
(Diluted) $1.02 (1) $0.94 (2) 8.5
Effective tax
rate 16.4% 19.9%
--------------- ---- ----
(1) The difference between as reported earnings and as adjusted
earnings before provision for taxes on income, net earnings and net
earnings per share (diluted) is the exclusion of restructuring expense of
$1,186 million ($1,073 million restructuring expense and $113 million
related to restructuring included in cost of products sold), $852 million
and $0.31 per share, respectively, and the exclusion of income from net
litigation of $386 million, $212 million and $0.08 per share,
respectively.
(2) The difference between as reported earnings and as adjusted earnings
before provision for taxes on income, net earnings and net earnings per
share (diluted) is the exclusion of IPR&D of $141 million with no tax
benefit and $0.05 per share, respectively, and the exclusion of income
from net litigation of $379 million, $229 million and $0.08 per share,
respectively.
Johnson & Johnson and Subsidiaries
-----------------------------------
Condensed Consolidated Statement of Earnings
(Unaudited; in
Millions Except
Per Share
Figures) TWELVE MONTHS
----------------
2009 2008
---- ---- Percent
Percent Percent Increase
Amount to Sales Amount to Sales (Decrease)
------------------ ------ -------- ------ -------- ------------
Sales to customers $61,897 100.0 $63,747 100.0 (2.9)
------------------ ------- ----- ------- ----- ----
Cost of products
sold 18,447 29.8 18,511 29.1 (0.3)
Selling,
marketing and
administrative
expenses 19,801 32.0 21,490 33.7 (7.9)
Research expense 6,986 11.3 7,577 11.9 (7.8)
In-process
research &
development
(IPR&D) - - 181 0.3
Interest
(income)expense,
net 361 0.6 74 0.1
Other
(income)expense,
net (526) (0.8) (1,015) (1.6)
Restructuring
expense 1,073 1.7 - -
------------- ----- --- - - ----
Earnings before
provision for
taxes on income 15,755 25.4 16,929 26.5 (6.9)
Provision for
taxes on income 3,489 5.6 3,980 6.2 (12.3)
---------------- ----- --- ----- --- -----
Net earnings $12,266 19.8 $12,949 20.3 (5.3)
------------ ------- ---- ------- ---- ----
Net earnings per
share (Diluted) $4.40 $4.57 (3.7)
Average shares
outstanding
(Diluted) 2,789.1 2,835.6
Effective tax rate 22.1% 23.5%
------------------
Adjusted earnings before provision for taxes and net earnings
Earnings before
provision for
taxes on income $16,555 (1) 26.7 $16,731 (2) 26.2 (1.1)
Net earnings $12,906 (1) 20.9 $12,901 (2) 20.2 -
Net earnings per
share
(Diluted) $4.63 (1) $4.55 (2) 1.8
Effective tax
rate 22.0% 22.9%
--------------- ---- ----
(1) The difference between as reported earnings and as adjusted earnings
before provision for taxes on income, net earnings and net earnings per
share (diluted) is the exclusion of restructuring expense of $1,186
million ($1,073 million restructuring expense and $113 million related to
restructuring included in cost of products sold), $852 million and $0.31
per share, respectively, and the exclusion of income from fourth quarter
net litigation of $386 million, $212 million and $0.08 per share,
respectively.
(2) The difference between as reported earnings and as adjusted earnings
before provision for taxes on income, net earnings and net earnings per
share (diluted) is the exclusion of IPR&D of $181 million with no tax
benefit and $0.06 per share, respectively, and the exclusion of income
from fourth quarter net litigation of $379 million, $229 million and $0.08
per share, respectively.
SOURCE Johnson & Johnson
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