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View printer-friendly version < < backNEW BRUNSWICK, N.J., April 20, 2010 /PRNewswire via COMTEX News Network/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $15.6 billion for the first quarter of 2010, an increase of 4.0% as compared to the first quarter of 2009. Operational results declined 0.1% and the positive impact of currency was 4.1%. Domestic sales declined 5.0%, while international sales increased 14.4%, reflecting operational growth of 5.5% and a positive currency impact of 8.9%.
Net earnings and diluted earnings per share for the first quarter of 2010 were $4.5 billion and $1.62, respectively. First-quarter 2010 net earnings included an after-tax gain of $910 million representing the net impact of litigation matters. Excluding this special item, net earnings for the current quarter were $3.6 billion and diluted earnings per share were $1.29, representing increases of 3.1% and 2.4%, respectively, as compared to the same period in 2009.* The Company updated its earnings guidance for full-year 2010 to $4.80 - $4.90 per share to reflect recent changes in foreign currency exchange rates. Earnings guidance excludes the impact of special items and now incorporates the impact of recently enacted health care reform legislation.
"Thanks to the outstanding efforts of our people, we were able to deliver solid financial results," said William C. Weldon, Chairman and Chief Executive Officer. "This was accomplished despite a major product recall and the continued impact of patent expirations. We are well positioned for future growth."
Worldwide Consumer sales of $3.8 billion for the first quarter represented an increase of 1.5% versus the prior year consisting of a decrease of 3.7% operationally and a positive impact from currency of 5.2%. Domestic sales decreased 9.6%; international sales increased 11.1%, which reflected an operational increase of 1.4% and a positive currency impact of 9.7%.
Positive contributors to operational results were NEUTROGENA(R), AVEENO(R) and LE PETIT MARSEILLAIS(R) skin care products; ZYRTEC(R) over-the-counter allergy treatment; international sales of LISTERINE(R) antiseptic mouthrinse; and women's sanitary protection products. These operational sales increases were more than offset by the impact of the previously announced recall of selected OTC products as well as the devaluation of the Venezuelan currency.
Worldwide Pharmaceutical sales of $5.6 billion for the first quarter represented a decrease of 2.5% versus the prior year consisting of an operational decline of 5.7% and a positive impact from currency of 3.2%. Domestic sales decreased 12.7%; international sales increased 15.5%, which reflected an operational increase of 6.6% and a positive currency impact of 8.9%.
Products with strong operational growth included REMICADE(R) (infliximab), a biologic approved for the treatment of a number of immune mediated inflammatory diseases; PREZISTA(R) (darunavir), a treatment for HIV; VELCADE(R) (bortezomib), a treatment for multiple myeloma; and international sales of RISPERDAL(R) CONSTA(R) (risperidone) Long-Acting Treatment, an antipsychotic medication. Strong growth was also achieved from newly launched products including STELARA(TM) (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; and SIMPONI(TM)(golimumab), a biologic approved to treat adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis.
Sales results of TOPAMAX(R) (topiramate), an antiepileptic and a treatment for migraine, and RISPERDAL(R) (risperidone), an antipsychotic medication, were negatively impacted by generic competition.
Worldwide Medical Devices and Diagnostics sales of $6.2 billion for the first quarter represented an increase of 12.5% versus the prior year consisting of an operational increase of 8.1% and a positive currency impact of 4.4%. Domestic sales increased 8.8%; international sales increased 15.9%, which reflected an operational increase of 7.5% and a positive currency impact of 8.4%.
Primary contributors to operational growth included Ethicon's surgical care products; DePuy's orthopaedic joint reconstruction and sports medicine businesses; Ethicon Endo-Surgery's minimally invasive products and Advanced Sterilization Products' infection prevention solutions; 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 filed for CE Mark in Europe for its NEVO(R) Sirolimus-Eluting Coronary Stent, the first drug-eluting stent to utilize RES TECHNOLOGY(TM) , eliminating the need for surface coated and permanent polymers.
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 approximately 114,000 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 the net impact of litigation gains, 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 measure 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 conference call with financial analysts 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. These schedules include supplementary sales data, a condensed consolidated statement of earnings, and sales of key products/franchises. Additional information on Johnson & Johnson, including a pharmaceutical pipeline of selected compounds in late stage development and medical devices and diagnostics pipeline of selected products, 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 Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 3, 2010. 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
--------------
2010 2009 Total Operations Currency
---- ---- ----- ---------- --------
Sales to customers
by segment of
business
Consumer
U.S. 1,560 1,726 (9.6)% (9.6) -
International 2,206 1,985 11.1 1.4 9.7
------------- ----- ----- ---- --- ---
3,766 3,711 1.5 (3.7) 5.2
===== ===== === ==== ===
Pharmaceutical
U.S. 3,206 3,674 (12.7) (12.7) -
International 2,432 2,106 15.5 6.6 8.9
------------- ----- ----- ---- --- ---
5,638 5,780 (2.5) (5.7) 3.2
===== ===== ==== ==== ===
Med Devices &
Diagnostics
U.S. 2,886 2,652 8.8 8.8 -
International 3,341 2,883 15.9 7.5 8.4
------------- ----- ----- ---- --- ---
6,227 5,535 12.5 8.1 4.4
===== ===== ==== === ===
U.S. 7,652 8,052 (5.0) (5.0) -
International 7,979 6,974 14.4 5.5 8.9
------------- ----- ----- ---- --- ---
Worldwide $15,631 15,026 4.0% (0.1) 4.1
========= ======= ====== === ==== ===
Johnson & Johnson and Subsidiaries
----------------------------------
Supplementary Sales
Data
(Unaudited; Dollars
in Millions) FIRST QUARTER
------------------- -------------
Percent Change
--------------
2010 2009 Total Operations Currency
---- ---- ----- ---------- --------
Sales to customers
by geographic area
U.S. $7,652 8,052 (5.0)% (5.0) -
---- ------ ----- ----- ---- ---
Europe 4,102 3,671 11.7 4.6 7.1
Western Hemisphere
excluding U.S. 1,280 1,062 20.5 3.5 17.0
Asia-Pacific, Africa 2,597 2,241 15.9 7.8 8.1
International 7,979 6,974 14.4 5.5 8.9
------------- ----- ----- ---- --- ---
Worldwide $15,631 15,026 4.0% (0.1) 4.1
========= ======= ====== === ==== ===
Johnson & Johnson and Subsidiaries
----------------------------------
Condensed Consolidated Statement of Earnings
(Unaudited; in
Millions Except Per
Share Figures) FIRST QUARTER
-------------------- -------------
2010 2009 Percent
-------------------- -----------------
Percent Percent Increase
Amount to Sales Amount to Sales (Decrease)
------------------ ------ -------- ------ -------- ---------
Sales to customers $15,631 100.0 $15,026 100.0 4.0
------------------ ------- ----- ------- ----- ---
Cost of products
sold 4,528 29.0 4,251 28.3 6.5
Selling, marketing
and administrative
expenses 4,779 30.5 4,608 30.7 3.7
Research expense 1,557 10.0 1,518 10.1 2.6
Interest
(income)expense,
net 81 0.5 81 0.5
Other
(income)expense,
net (1,594) (10.2) (75) (0.5)
----------------- ------ ----- --- ---- ----
Earnings before
provision for taxes
on income 6,280 40.2 4,643 30.9 35.3
Provision for taxes
on income 1,754 11.2 1,136 7.6 54.4
------------------- ----- ---- ----- --- ----
Net earnings $4,526 29.0 $3,507 23.3 29.1
------------ ------ ---- ------ ---- ----
Net earnings per
share (Diluted) $1.62 $1.26 28.6
Average shares
outstanding
(Diluted) 2,797.3 2,789.8
Effective tax rate 27.9% 24.5%
--------------------
Adjusted earnings before
provision for taxes and
net earnings
Earnings before
provision for taxes
on income $4,783 (1) 30.6 $4,643 30.9 3.0
Net earnings $3,616 (1) 23.1 $3,507 23.3 3.1
Net earnings per
share
(Diluted) $1.29 (1) $1.26 2.4
Effective tax
rate 24.4% 24.5%
------------------ ---- ----
(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 income from net litigation of $1,497
million, $910 million and $0.33 per share, respectively.
REPORTED SALES vs. PRIOR PERIOD ($MM)
-------------------------------------
FIRST QUARTER
-------------
% Change
--------
Operational
2010 2009 Reported (1) Currency
---- ---- -------- -------------- --------
CONSUMER SEGMENT
(2)
--------------------
SKIN CARE
---------
US 452 423 6.9% 6.9% -
Intl 468 419 11.7% 2.4% 9.3%
WW 920 842 9.3% 4.6% 4.7%
BABY CARE
---------
US 103 102 1.0% 1.0% -
Intl 426 387 10.1% 1.2% 8.9%
WW 529 489 8.2% 1.2% 7.0%
ORAL CARE
---------
US 174 188 -7.4% -7.4% -
Intl 207 177 16.9% 5.1% 11.8%
WW 381 365 4.4% -1.3% 5.7%
OTC/NUTRITIONALS
----------------
US 542 726 -25.3% -25.3% -
Intl 665 622 6.9% -2.7% 9.6%
WW 1,207 1,348 -10.5% -15.0% 4.5%
WOMEN'S HEALTH
--------------
US 146 149 -2.0% -2.0% -
Intl 323 274 17.9% 7.8% 10.1%
WW 469 423 10.9% 4.4% 6.5%
WOUND CARE / OTHER
------------------
US 143 138 3.6% 3.6% -
Intl 117 106 10.4% - 10.4%
WW 260 244 6.6% 2.1% 4.5%
TOTAL CONSUMER
--------------
US 1,560 1,726 -9.6% -9.6% -
Intl 2,206 1,985 11.1% 1.4% 9.7%
WW 3,766 3,711 1.5% -3.7% 5.2%
* See footnotes
below
PHARMACEUTICAL
SEGMENT (2) (5)
------------------
ACIPHEX/PARIET
--------------
US 119 138 -13.8% -13.8% -
Intl 141 125 12.8% 3.1% 9.7%
WW 260 263 -1.1% -5.7% 4.6%
CONCERTA
--------
US 231 269 -14.1% -14.1% -
Intl 98 75 30.7% 17.3% 13.4%
WW 329 344 -4.4% -7.3% 2.9%
DURAGESIC/
FENTANYL
TRANSDERMAL
------------
US 38 75 -49.3% -49.3% -
Intl 146 156 -6.4% -13.4% 7.0%
WW 184 231 -20.3% -25.1% 4.8%
LEVAQUIN/FLOXIN
---------------
US 363 408 -11.0% -11.0% -
Intl 8 17 -52.9% -56.3% 3.4%
WW 371 425 -12.7% -12.8% 0.1%
PREZISTA
--------
US 89 72 23.6% 23.6% -
Intl 98 50 96.0% 80.3% 15.7%
WW 187 122 53.3% 46.8% 6.5%
PROCRIT/EPREX
-------------
US 290 321 -9.7% -9.7% -
Intl 233 229 1.7% -6.2% 7.9%
WW 523 550 -4.9% -8.2% 3.3%
REMICADE
--------
US 780 737 5.8% 5.8% -
US Exports (3) 400 286 39.9% 39.9% -
Intl 6 5 20.0% 19.9% 0.1%
WW 1,186 1,028 15.4% 15.4% -
RISPERDAL/
RISPERIDONE
------------
US 5 118 -95.8% -95.8% -
Intl 133 157 -15.3% -20.1% 4.8%
WW 138 275 -49.8% -52.5% 2.7%
RISPERDAL CONSTA
----------------
US 117 126 -7.1% -7.1% -
Intl 262 199 31.7% 21.4% 10.3%
WW 379 325 16.6% 10.3% 6.3%
TOPAMAX
-------
US 57 495 -88.5% -88.5% -
Intl 91 107 -15.0% -21.6% 6.6%
WW 148 602 -75.4% -76.6% 1.2%
VELCADE
-------
US - - - - -
Intl 261 192 35.9% 26.3% 9.6%
WW 261 192 35.9% 26.3% 9.6%
OTHER
-----
US 717 629 14.0% 14.0% -
Intl 955 794 20.3% 11.1% 9.2%
WW 1,672 1,423 17.5% 12.4% 5.1%
TOTAL
PHARMACEUTICAL
---------------
US 3,206 3,674 -12.7% -12.7% -
Intl 2,432 2,106 15.5% 6.6% 8.9%
WW 5,638 5,780 -2.5% -5.7% 3.2%
MAJOR NEW PHARM
PRODUCTS (4)
-------------------
INVEGA
------
US 69 66 4.5% 4.5% -
Intl 39 25 56.0% 43.2% 12.8%
WW 108 91 18.7% 15.1% 3.6%
- - ---- ---- ---
* See footnotes
below
MEDICAL DEVICES
AND DIAGNOSTICS
(2)
-------------------
CORDIS (6)
---------
US 251 246 2.0% 2.0% -
Intl 421 422 -0.2% -6.3% 6.1%
WW 672 668 0.6% -3.3% 3.9%
DEPUY
-----
US 814 766 6.3% 6.3% -
Intl 640 526 21.7% 11.2% 10.5%
WW 1,454 1,292 12.5% 8.2% 4.3%
DIABETES CARE
-------------
US 290 270 7.4% 7.4% -
Intl 307 271 13.3% 5.4% 7.9%
WW 597 541 10.4% 6.4% 4.0%
ETHICON
-------
US 510 405 25.9% 25.9% -
Intl 637 548 16.2% 7.6% 8.6%
WW 1,147 953 20.4% 15.5% 4.9%
ETHICON ENDO-
SURGERY
-------------
US 483 454 6.4% 6.4% -
Intl 685 561 22.1% 12.9% 9.2%
WW 1,168 1,015 15.1% 10.0% 5.1%
ORTHO-CLINICAL
DIAGNOSTICS
--------------
US 288 277 4.0% 4.0% -
Intl 237 190 24.7% 16.1% 8.6%
WW 525 467 12.4% 8.9% 3.5%
VISION CARE
-----------
US 249 234 6.4% 6.4% -
Intl 415 365 13.7% 6.9% 6.8%
WW 664 599 10.9% 6.8% 4.1%
TOTAL MEDICAL
DEVICES AND
DIAGNOSTICS
-------------
US 2,886 2,652 8.8% 8.8% -
Intl 3,341 2,883 15.9% 7.5% 8.4%
WW 6,227 5,535 12.5% 8.1% 4.4%
--- --- ---- --- ---
(1) Operational growth excludes the effect of currency
(2) Select areas (unaudited)
(3) Reported in U.S. sales
(4) Included in Other
(5) Prior year conforms to current year presentation
(6) Includes sales of Drug-Eluting Stents for Q1 2010 of $60, $131
and $191MM Domestic, International and Worldwide respectively
Includes sales of Drug-Eluting Stents for Q1 2009 of $67, $184 and
$251MM Domestic, International and Worldwide respectively
SOURCE Johnson & Johnson
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