News Releases

View printer-friendly version < < back
Johnson & Johnson Reports 2018 Fourth-Quarter Results:
Jan 22, 2019
2018 Fourth-Quarter Sales of $20.4 Billion increased 1.0%; EPS was $1.12
2018 Full-Year Sales of $81.6 Billion increased 6.7%, Full-Year EPS was $5.61
Adjusted 2018 Fourth-Quarter EPS was $1.97, an increase of 13.2%*, and Adjusted 2018 Full-Year EPS was $8.18, an increase of 12.1%*
Strong 2018 Full-Year Operational Sales and Adjusted EPS Growth of 6.3% and 12.1%, Respectively*
$5 Billion Share Repurchase Program in Progress

NEW BRUNSWICK, N.J., Jan. 22, 2019 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $20.4 billion for the fourth quarter of 2018, an increase of 1.0% as compared to the fourth quarter of 2017. Operational sales results increased 3.3% and the negative impact of currency was 2.3%. Domestic sales increased 1.5%. International sales increased 0.4%, reflecting operational growth of 5.1% and a negative currency impact of 4.7%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales for the fourth quarter of 2018 increased 5.3%, domestic sales increased 2.6% and international sales increased 8.3%.*

Worldwide sales for the full-year 2018 were $81.6 billion, an increase of 6.7% versus 2017. Operational results increased 6.3% and the positive impact of currency was 0.4%. Domestic sales increased 5.1%. International sales increased 8.5%, reflecting operational growth of 7.7% and a positive currency impact of 0.8%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales for the full-year 2018 increased 5.5%, domestic sales increased 3.4% and international sales increased 7.8%.*

Net earnings and diluted earnings per share for the fourth quarter of 2018 were $3.0 billion and $1.12, respectively. Fourth-quarter 2018 net earnings included after-tax intangible amortization expense of approximately $1.0 billion and a net charge for after-tax special items of approximately $1.4 billion.   Fourth-quarter 2017 net earnings included after-tax intangible amortization expense of approximately $0.9 billion and a net charge for after-tax special items of approximately $14.6 billion. Included in these special items was the provisional amount of approximately $13.6 billion associated with the enactment of tax legislation.  Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.4 billion and adjusted diluted earnings per share were $1.97, representing increases of 12.5% and 13.2%, respectively, as compared to the same period in 2017.* On an operational basis, adjusted diluted earnings per share increased 16.1%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

Net earnings and diluted earnings per share for the full-year 2018 were $15.3 billion and $5.61, respectively.  Full-year net earnings included after-tax intangible amortization expense of approximately $3.9 billion and a net charge for after-tax special items of approximately $3.1 billion. Full-year 2017 net earnings included after-tax intangible amortization expense of approximately $2.5 billion and a charge for after-tax special items of approximately $16.2 billion.  Included in these special items was a provisional amount of approximately $13.6 billion associated with the enactment of tax legislation.  Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the full-year of 2018 were $22.3 billion and adjusted diluted earnings per share were $8.18, representing increases of 11.4% and 12.1%, respectively, as compared to the same period in 2017.* On an operational basis, adjusted diluted earnings per share also increased 10.4%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

"Johnson & Johnson delivered another year of strong operational sales growth of 6.3% and achieved our 35th consecutive year of adjusted operational earnings growth at 9.8% in 2018. This can be attributed to accelerated underlying sales performance across each of our businesses, where we also leveraged our scale across the enterprise to improve margins," said Alex Gorsky, Chairman and Chief Executive Officer. "Looking ahead, the strength of our broad-based business and disciplined approach to portfolio management positions us to continue to fuel investments in innovation that enable us to capitalize on strategic opportunities and deliver strong performance over the long-term." 

Mr. Gorsky continued, "Our performance is the result of our talented Johnson & Johnson colleagues and their extraordinary dedication to help advance health and well-being for patients and customers around the world."

In December, the Company announced a share repurchase program of up to $5.0 billion of the Company's common stock. Repurchases may be made at management's discretion from time to time on the open market or through privately negotiated transactions. The repurchase program has no time limit and may be suspended for periods or discontinued at any time.

The Company announced its 2019 full-year guidance for sales of $80.4 billion to $81.2 billion reflecting expected operational growth in the range of 0.0% to 1.0% and expected adjusted operational growth in the range of 2.0% to 3.0%. The Company also announced adjusted earnings guidance for full-year 2019 of $8.50 to $8.65 per share reflecting expected operational growth in the range of 5.7% to 7.6%.* Adjusted earnings guidance excludes the impact of after-tax intangible amortization expense and special items.

Segment Sales Performance
Worldwide Consumer sales of $13.9 billion for the full-year 2018 represented an increase of 1.8% versus the prior year, consisting of an operational increase of 2.2% and a negative impact from currency of 0.4%. Domestic sales increased 3.5%; international sales increased 0.7%, which reflected an operational increase of 1.4% and a negative currency impact of 0.7%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 3.2%, domestic sales increased 3.1% and international sales increased 3.3%*.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by growth in over-the-counter products, including TYLENOL and MOTRIN analgesics and digestive health products; NEUTROGENA and OGX beauty products; and LISTERINE oral care products. Subsequent to the quarter, the Company announced the completion of the acquisition of Ci:z Holdings Co., Ltd., which markets the DR.CI:LABO, LABO  LABO and GENOMER line of skincare products.

Worldwide Pharmaceutical sales of $40.7 billion for the full-year 2018 represented an increase of 12.4% versus the prior year with an operational increase of 11.8% and a positive impact from currency of 0.6%. Domestic sales increased 8.4%; international sales increased 18.0%, which reflected an operational increase of 16.5% and a positive currency impact of 1.5%. Sales included the impact of Actelion Ltd which contributed 3.4%, to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 8.4%, domestic sales increased 4.9% and international sales increased 13.5%.* 

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by STELARA (ustekinumab) and SIMPONI/SIMPONI ARIA (golimumab), biologics for the treatment of  a number of immune-mediated inflammatory diseases, ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, DARZALEX (daratumumab), for the treatment of patients with multiple myeloma, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, TREMFYA (guselkumab), for the treatment of adults living with moderate to severe plaque psoriasis,  INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), a long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, partially offset by declines in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, due to biosimilar entrants.

During the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for INVOKANA (canagliflozin) to reduce the risk of major adverse cardiovascular (CV) events, including heart attack, stroke or death due to a cardiovascular cause in adults with type 2 diabetes who have established CV disease. In addition, the European Commission approved apalutamide, a next generation oral androgen receptor inhibitor for the treatment of adult patients with non-metastatic castration-resistant prostate cancer (nmCRPC) who are at high risk of developing metastatic disease.

A supplemental Biologics License Application was submitted to the FDA and a Type II Variation Application was submitted to European Medicines Agency (EMA) seeking approval of STELARA (ustekinumab) for the treatment of adults with moderately to severely active ulcerative colitis. A supplemental New Drug Application was submitted to the FDA seeking to broaden the use of XARELTO (rivaroxaban) for the prevention of venous thromboembolism (VTE), or blood clots, in medically ill patients. Two Type II Variation Applications were submitted to EMA for the expanded use of IMBRUVICA (ibrutinib) in combination with obinutuzumab in previously untreated adults with chronic lymphocytic leukemia and in combination with rituximab for the treatment of previously untreated and relapsed/refractory adults with Waldenström's macroglobulinemia.

Additionally, the Company entered into a worldwide collaboration and license agreement with argenx BVBA and argenx SE to develop and commercialize cusatuzumab (ARGX-110), an investigational therapeutic antibody that targets CD70, an immune checkpoint implicated in numerous cancers, including hematological malignancies.

Worldwide Medical Devices sales of $27.0 billion for the full-year 2018 represented an increase of 1.5% versus the prior year consisting of an operational increase of 1.1% and a positive currency impact of 0.4%. Domestic sales increased 0.1%; international sales increased 2.8%, which reflected an operational increase of 1.9% and a positive currency impact of 0.9%. Sales included the impact of the divestiture of its Lifescan business which negatively impacted worldwide operational sales growth by 1.4%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.6%, domestic sales increased 1.0% and international sales increased 4.0%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology products in the Interventional Solutions business; ACUVUE contact lenses and surgical products in the Vision business; wound closure products in the General Surgery business; along with endocutters and biosurgicals in the Advanced Surgery business.

About Johnson & Johnson
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

* Operational sales growth excluding the net impact of acquisitions and divestitures, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at www.investor.jnj.com. Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

Johnson & Johnson will conduct a conference call with investors 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. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can be found on the company's website at www.investor.jnj.com.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including unexpected clinical trial results, additional analysis of existing clinical data, uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; the impact of business combinations and divestitures; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws, global health care reforms and import/export and trade laws; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the company's most recently filed Quarterly Report on Form 10-Q and in the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

 

(Unaudited; Dollars in Millions)

FOURTH QUARTER

 

TWELVE MONTHS

         

Percent Change

         

Percent Change

 

2018

 

2017

 

Total

 

Operations

 

Currency

 

2018

 

2017

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

segment of business

                                     
                                       

Consumer

                                     

    U.S.

$     1,479

 

1,379

 

7.3

%

7.3

 

-

 

$     5,761

 

5,565

 

3.5

%

3.5

 

-

    International

2,057

 

2,161

 

(4.8)

 

0.8

 

(5.6)

 

8,092

 

8,037

 

0.7

 

1.4

 

(0.7)

 

3,536

 

3,540

 

(0.1)

 

3.3

 

(3.4)

 

13,853

 

13,602

 

1.8

 

2.2

 

(0.4)

                                       

Pharmaceutical

                                     

    U.S.

5,936

 

5,776

 

2.8

 

2.8

 

-

 

23,286

 

21,474

 

8.4

 

8.4

 

-

    International

4,254

 

3,905

 

8.9

 

13.7

 

(4.8)

 

17,448

 

14,782

 

18.0

 

16.5

 

1.5

 

10,190

 

9,681

 

5.3

 

7.2

 

(1.9)

 

40,734

 

36,256

 

12.4

 

11.8

 

0.6

                                       

Medical Devices

                                     

    U.S.

3,214

 

3,314

 

(3.0)

 

(3.0)

 

-

 

12,837

 

12,824

 

0.1

 

0.1

 

-

    International

3,454

 

3,660

 

(5.6)

 

(1.4)

 

(4.2)

 

14,157

 

13,768

 

2.8

 

1.9

 

0.9

 

6,668

 

6,974

 

(4.4)

 

(2.2)

 

(2.2)

 

26,994

 

26,592

 

1.5

 

1.1

 

0.4

                                       

U.S.

10,629

 

10,469

 

1.5

 

1.5

 

-

 

41,884

 

39,863

 

5.1

 

5.1

 

-

International

9,765

 

9,726

 

0.4

 

5.1

 

(4.7)

 

39,697

 

36,587

 

8.5

 

7.7

 

0.8

Worldwide

$   20,394

 

20,195

 

1.0

%

3.3

 

(2.3)

 

$   81,581

 

76,450

 

6.7

%

6.3

 

0.4

 

 

Johnson & Johnson and Subsidiaries

                                     

Supplementary Sales Data

                                     
                                       

(Unaudited; Dollars in Millions)

FOURTH QUARTER

 

TWELVE MONTHS

         

Percent Change

         

Percent Change

 

2018

 

2017

 

Total

 

Operations

 

Currency

 

2018

 

2017

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

geographic area

                                     
                                       

U.S.

$   10,629

 

10,469

 

1.5

%

1.5

 

-

 

$   41,884

 

39,863

 

5.1

%

5.1

 

-

                                       

Europe

4,730

 

4,728

 

0.0

 

3.9

 

(3.9)

 

18,753

 

17,126

 

9.5

 

6.2

 

3.3

Western Hemisphere excluding U.S.

1,456

 

1,519

 

(4.1)

 

7.7

 

(11.8)

 

6,113

 

6,041

 

1.2

 

8.2

 

(7.0)

Asia-Pacific, Africa

3,579

 

3,479

 

2.9

 

5.8

 

(2.9)

 

14,831

 

13,420

 

10.5

 

9.4

 

1.1

International

9,765

 

9,726

 

0.4

 

5.1

 

(4.7)

 

39,697

 

36,587

 

8.5

 

7.7

 

0.8

                                       

Worldwide

$   20,394

 

20,195

 

1.0

%

3.3

 

(2.3)

 

$   81,581

 

76,450

 

6.7

%

6.3

 

0.4

 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings

                 
                   

(Unaudited; in Millions Except Per Share Figures)

FOURTH QUARTER

                   
 

2018

 

2017*

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$    20,394

 

100.0

 

$    20,195

 

100.0

 

1.0

Cost of products sold

6,961

 

34.1

 

7,259

 

36.0

 

(4.1)

Gross Profit

13,433

 

65.9

 

12,936

 

64.0

 

3.8

Selling, marketing and administrative expenses

5,991

 

29.4

 

6,045

 

29.9

 

(0.9)

Research and development expense

3,224

 

15.8

 

3,643

 

18.1

 

(11.5)

In-process research and development

-

 

-

 

408

 

2.0

   

Interest (income) expense, net

54

 

0.3

 

189

 

0.9

   

Other (income) expense, net

978

 

4.8

 

(53)

 

(0.3)

   

Restructuring

64

 

0.3

 

144

 

0.7

   

Earnings before provision for taxes on income

3,122

 

15.3

 

2,560

 

12.7

 

22.0

Provision for taxes on income

80

 

0.4

 

13,273

 

65.7

 

N/M

Net earnings/(Loss)

$      3,042

 

14.9

 

$   (10,713)

 

(53.0)

 

N/M

                   

Net earnings/(Loss) per share (Diluted/Basic)**

$        1.12

     

$       (3.99)

     

N/M

                   

Average shares outstanding (Diluted/Basic)**

2,724.0

     

2,684.9

       
                   

Effective tax rate

2.6

%

   

518.5

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

Earnings before provision for taxes on income

$      6,046

 

29.6

 

$      5,251

 

26.0

 

15.1

Net earnings

$      5,372

 

26.3

 

$      4,777

 

23.7

 

12.5

Net earnings per share (Diluted)

$        1.97

     

$        1.74

     

13.2

   Average shares outstanding (Diluted)***

2,724.0

     

2,740.7

       

Effective tax rate

11.1

%

   

9.0

%

     
                   

* 2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07

               

** In 2017 basic shares are used to calculate loss per share as use of diluted shares when in a loss position would be anti-dilutive 

       

*** In 2017 difference of 55.8 shares due to anti-dilutive impact on net loss position 

               
                   

(1)See Reconciliation of Non-GAAP Financial Measures.

                 
                   

N/M = Not Meaningful

                 

 

 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings

                 
                   

(Unaudited; in Millions Except Per Share Figures)

TWELVE MONTHS

                   
 

2018

 

2017*

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$    81,581

 

100.0

 

$    76,450

 

100.0

 

6.7

Cost of products sold

27,091

 

33.2

 

25,439

 

33.3

 

6.5

Gross Profit

54,490

 

66.8

 

51,011

 

66.7

 

6.8

Selling, marketing and administrative expenses

22,540

 

27.6

 

21,520

 

28.1

 

4.7

Research and development expense

10,775

 

13.2

 

10,594

 

13.9

 

1.7

In-process research and development

1,126

 

1.4

 

408

 

0.6

   

Interest (income) expense, net

394

 

0.5

 

549

 

0.7

   

Other (income) expense, net

1,405

 

1.7

 

(42)

 

(0.1)

   

Restructuring

251

 

0.3

 

309

 

0.4

   

Earnings before provision for taxes on income

17,999

 

22.1

 

17,673

 

23.1

 

1.8

Provision for taxes on income

2,702

 

3.3

 

16,373

 

21.4

 

N/M

Net earnings

$    15,297

 

18.8

 

$      1,300

 

1.7

 

N/M

                   

Net earnings per share (Diluted)

$        5.61

     

$        0.47

     

N/M

                   

Average shares outstanding (Diluted)

2,728.7

     

2,745.3

       
                   

Effective tax rate

15.0

%

   

92.6

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

Earnings before provision for taxes on income

$    26,698

 

32.7

 

$    24,212

 

31.7

 

10.3

Net earnings

$    22,315

 

27.4

 

$    20,040

 

26.2

 

11.4

Net earnings per share (Diluted)

$        8.18

     

$        7.30

     

12.1

Effective tax rate

16.4

%

   

17.2

%

     
                   

* 2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07

               
                   

(1)See Reconciliation of Non-GAAP Financial Measures.

                 
                   

N/M = Not Meaningful

                 

 

 

Johnson & Johnson and Subsidiaries

                             

Reconciliation of Non-GAAP Financial Measures

                             
                               
   

Fourth Quarter

 

% Incr. /

   

Twelve Months 

 

% Incr. /

   

(Dollars in Millions Except Per Share Data)

 

2018

 

2017

 

(Decr.)

   

2018

 

2017

 

(Decr.)

   
                               

Earnings before provision for taxes on income - as reported

$    3,122

 

2,560

 

22.0

%

 

$ 17,999

 

17,673

 

1.8

%

 

Intangible asset amortization expense

 

1,073

 

1,077

       

4,357

 

2,963

       

Litigation expense, net

 

1,288

 

645

       

1,991

 

1,256

       

Actelion acquisition related cost

 

43

 

217

       

243

 

797

       

Restructuring/Other(1)

 

227

 

284

       

700

 

760

       

In-process research and development

 

-

 

408

       

1,126

 

408

       

Diabetes asset impairment

 

-

 

35

       

4

 

215

       

AMO acquisition related cost

 

27

 

25

       

109

 

140

       

Contingent liability reversal

 

-

 

-

       

(184)

 

-

       

Unrealized loss/(gain) on securities

 

182

 

-

       

179

 

-

       

Impact of tax legislation

 

72

 

-

       

72

 

-

       

Other

 

12

 

-

       

102

 

-

       

Earnings before provision for taxes on income - as adjusted

$    6,046

 

5,251

 

15.1

%

 

$ 26,698

 

24,212

 

10.3

%

 
                               

Net Earnings/(Loss) - as reported

 

$    3,042

 

(10,713)

 

 N/M 

%

 

$ 15,297

 

1,300

 

 N/M 

%

 

Intangible asset amortization expense

 

957

 

926

       

3,888

 

2,481

       

Litigation expense, net

 

1,113

 

506

       

1,722

 

955

       

Actelion acquisition related cost

 

39

 

313

       

232

 

767

       

Restructuring/Other

 

190

 

237

       

585

 

595

       

In-process research and development

 

-

 

266

       

859

 

266

       

Diabetes asset impairment

 

-

 

(116)

       

3

 

4

       

AMO acquisition related cost

 

21

 

(198)

       

89

 

116

       

Contingent liability reversal

 

-

 

-

       

(184)

 

-

       

Unrealized loss/(gain) on securities

 

143

 

-

       

141

 

-

       

Impact of tax legislation(2)

 

(137)

 

13,556

       

(390)

 

13,556

       

Other

 

4

 

-

       

73

 

-

       

Net Earnings - as adjusted 

 

$    5,372

 

4,777

 

12.5

%

 

$ 22,315

 

20,040

 

11.4

%

 
                               

Operational Increase

         

15.4

%

         

9.8

%

 
                               

Currency Increase/(Decrease)

         

(2.9)

%

         

1.6

%

 
                               

Diluted Net Earnings/(Loss) per share - as reported

 

$     1.12

 

(3.99)

 

 N/M 

%

 

$    5.61

 

0.47

 

 N/M 

%

 

Dilutive impact of shares excluded due to net loss position

-

 

0.08

       

-

 

-

       

Intangible asset amortization expense

 

0.35

 

0.34

       

1.42

 

0.90

       

Litigation expense, net

 

0.41

 

0.19

       

0.63

 

0.35

       

Actelion acquisition related cost

 

0.01

 

0.11

       

0.09

 

0.28

       

Restructuring/Other

 

0.07

 

0.08

       

0.21

 

0.22

       

In-process research and development

 

-

 

0.10

       

0.32

 

0.10

       

Diabetes asset impairment

 

-

 

(0.04)

       

-

 

-

       

AMO acquisition related cost

 

0.01

 

(0.07)

       

0.03

 

0.04

       

Contingent liability reversal

 

-

 

-

       

(0.07)

 

-

       

Unrealized loss/(gain) on securities

 

0.05

 

-

       

0.05

 

-

       

Impact of tax legislation

 

(0.05)

 

4.94

       

(0.14)

 

4.94

       

Other

 

-

 

-

       

0.03

 

-

       

Diluted Net Earnings per share - as adjusted 

 

$     1.97

 

1.74

 

13.2

%

 

$    8.18

 

7.30

 

12.1

%

 
                               

Operational Diluted Net Earnings per share - as adjusted
at 2016 foreign currency exchange rates

     

1.67

           

7.24

       
                               

Impact of currency at 2017 foreign currency exchange rates

0.05

 

0.07

       

(0.12)

 

0.06

       
                               

Operational Diluted Net Earnings per share - as adjusted
at 2017 foreign currency exchange rates

 

$     2.02

 

1.74

 

16.1

%

 

$    8.06

 

7.30

 

10.4

%

 
                               

(1) Includes $32M recorded in cost of products sold and $131M recorded in other (income) expense for the fourth quarter 2018, and $42M recorded in cost of products sold 

     and $98M recorded in other (income) expense for the fourth quarter 2017.

                         

     Includes $105M recorded in cost of products sold and $344M recorded in other (income) expense for twelve months YTD 2018, and $88M recorded in cost of products sold

     and $363M recorded in other (income) expense for twelve months YTD 2017.

                         
                               

(2) Includes foreign currency translation

                             
                               

N/M = Not Meaningful

                             

 

 

 

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

Operational Sales Growth Excluding Acquisitions and Divestitures

 FOURTH QUARTER 2018 ACTUAL vs. 2017 ACTUAL 

 

 Segments 

   

 Consumer 

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

   

Operational % (1)

                 

 WW As Reported: 

 

3.3%

 

7.2%

 

(2.2)%

 

3.3%

 U.S. 

 

7.3%

 

2.8%

 

(3.0)%

 

1.5%

 International 

 

0.8%

 

13.7%

 

(1.4)%

 

5.1%

                 

Wound Care / Other

               

Compeed

 

0.7

         

0.1

 U.S. 

 

0.0

         

0.0

 International 

 

1.2

         

0.3

                 

Beauty

               

Nizoral

 

0.6

         

0.1

 U.S. 

 

0.4

         

0.0

 International 

 

0.8

         

0.2

                 

OTC

               

Zarbees

 

(0.8)

         

(0.1)

 U.S. 

 

(2.2)

         

(0.2)

 International 

 

0.0

         

0.0

                 

Diabetes Care

               

LifeScan

         

5.3

 

1.9

 U.S. 

         

3.7

 

1.2

 International 

         

6.8

 

2.7

                 

All Other Acquisitions and Divestitures

 

0.0

 

0.0

 

0.2

 

0.0

 U.S. 

 

0.0

 

0.0

 

0.3

 

0.1

 International 

 

0.0

 

0.0

 

0.0

 

0.0

                 

WW Ops excluding Acquisitions and Divestitures

 

3.8%

 

7.2%

 

3.3%

 

5.3%

 U.S. 

 

5.5%

 

2.8%

 

1.0%

 

2.6%

 International 

 

2.8%

 

13.7%

 

5.4%

 

8.3%

                 

(1)Operational growth excludes the effect of translational currency

             

 

 

 

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

Operational Sales Growth Excluding Acquisitions and Divestitures

 TWELVE MONTHS 2018 ACTUAL vs. 2017 ACTUAL 

 

 Segments 

   

Consumer

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

   

Operational % (1)

                 

 WW As Reported: 

 

2.2%

 

11.8%

 

1.1%

 

6.3%

 U.S. 

 

3.5%

 

8.4%

 

0.1%

 

5.1%

 International 

 

1.4%

 

16.5%

 

1.9%

 

7.7%

                 

Pulmonary Hypertension

               

Actelion

     

(3.2)

     

(1.5)

 U.S. 

     

(3.4)

     

(1.8)

 International 

     

(2.8)

     

(1.1)

                 

Cardiovascular / Metabolism / Other

               

Actelion

     

(0.2)

     

(0.1)

 U.S. 

     

(0.1)

     

(0.1)

 International 

     

(0.2)

     

(0.1)

                 

Spine & Other 

               

Codman Neuroscience

         

0.7

 

0.3

 U.S. 

         

0.5

 

0.2

 International 

         

1.1

 

0.4

                 

Wound Care / Other

               

Compeed

 

0.9

         

0.2

 U.S. 

 

0.0

         

0.0

 International 

 

1.4

         

0.4

                 

Vision

               

Vision Surgical & Eye Health Business

         

(0.7)

 

(0.3)

  U.S.  

         

(0.7)

 

(0.2)

  International  

         

(0.8)

 

(0.3)

                 

Beauty

               

Nizoral

 

0.3

         

0.1

  U.S.  

 

0.2

         

0.0

  International  

 

0.4

         

0.1

                 

OTC

               

Zarbees

 

(0.3)

         

0.0

  U.S.  

 

(0.6)

         

(0.1)

  International  

 

0.0

         

0.0

                 

Diabetes Care

               

LifeScan

         

1.4

 

0.5

  U.S.  

         

0.9

 

0.3

  International  

         

1.8

 

0.7

                 

All Other Acquisitions and Divestitures

 

0.1

 

0.0

 

0.1

 

0.0

 U.S. 

 

0.0

 

0.0

 

0.2

 

0.0

 International 

 

0.1

 

0.0

 

0.0

 

0.0

                 

WW Ops excluding Acquisitions and Divestitures

 

3.2%

 

8.4%

 

2.6%

 

5.5%

 U.S. 

 

3.1%

 

4.9%

 

1.0%

 

3.4%

 International 

 

3.3%

 

13.5%

 

4.0%

 

7.8%

                 

(1)Operational growth excludes the effect of translational currency

               

 

 

 

   

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FOURTH QUARTER

 

TWELVE MONTHS

         

% Change

         

% Change

   

2018

 

2017

Reported

Operational (1)

Currency

   

2018

 

2017

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2) 

                             

BABY CARE

                             

US

 

$          116

 

$           123

-5.7%

-5.7%

-

   

$              422

 

$             449

-6.0%

-6.0%

-

Intl

 

357

 

367

-2.7%

4.8%

-7.5%

   

1,436

 

1,467

-2.1%

0.8%

-2.9%

WW

 

473

 

490

-3.5%

2.1%

-5.6%

   

1,858

 

1,916

-3.0%

-0.8%

-2.2%

BEAUTY

                             

US

 

612

 

596

2.7%

2.7%

-

   

2,403

 

2,335

2.9%

2.9%

-

Intl

 

499

 

514

-2.9%

2.4%

-5.3%

   

1,979

 

1,865

6.1%

6.2%

-0.1%

WW

 

1,111

 

1,110

0.1%

2.5%

-2.4%

   

4,382

 

4,200

4.3%

4.4%

-0.1%

ORAL CARE

                             

US

 

165

 

156

5.8%

5.8%

-

   

637

 

616

3.4%

3.4%

-

Intl

 

234

 

237

-1.3%

3.5%

-4.8%

   

918

 

915

0.3%

0.5%

-0.2%

WW

 

399

 

393

1.5%

4.4%

-2.9%

   

1,555

 

1,531

1.6%

1.7%

-0.1%

OTC

                             

US

 

491

 

406

20.9%

20.9%

-

   

1,850

 

1,716

7.8%

7.8%

-

Intl

 

657

 

699

-6.0%

-2.0%

-4.0%

   

2,484

 

2,410

3.1%

2.1%

1.0%

WW

 

1,148

 

1,105

3.9%

6.4%

-2.5%

   

4,334

 

4,126

5.0%

4.4%

0.6%

WOMEN'S HEALTH

                             

US

 

3

 

3

0.0%

0.0%

-

   

13

 

12

8.3%

8.3%

-

Intl

 

254

 

259

-1.9%

7.9%

-9.8%

   

1,036

 

1,038

-0.2%

3.5%

-3.7%

WW

 

257

 

262

-1.9%

7.8%

-9.7%

   

1,049

 

1,050

-0.1%

3.5%

-3.6%

WOUND CARE / OTHER

                             

US

 

92

 

95

-3.2%

-3.2%

-

   

436

 

437

-0.2%

-0.2%

-

Intl

 

56

 

85

-34.1%

-31.2%

-2.9%

   

239

 

342

-30.1%

-30.2%

0.1%

WW

 

148

 

180

-17.8%

-16.4%

-1.4%

   

675

 

779

-13.4%

-13.5%

0.1%

                               

TOTAL CONSUMER

                             

US

 

1,479

 

1,379

7.3%

7.3%

-