Johnson & Johnson 2Q profit jumps 42% despite lower sales
by Linda A. Johnson, The Associated Press
The world's biggest maker of health care products reported net income of US$5.61 billion
Johnson & Johnson posted slightly lower sales across much of its business in the second quarter, but a big one-time gain and lower spending on marketing and administration boosted its profit a whopping 42%. That blew past Wall Street expectations.
The maker of baby shampoo and cancer and immune disorder drugs on Tuesday raised its full-year sales forecast, despite sharply lower sales from its medical device business, as well as lower U.S. prescription drug sales and consumer health sales overseas. The bright spot was foreign medicine sales, which jumped 6.5 % to US$4.75 billion. That helped lift total revenue to $20.56 billion, also beating expectations.
The world’s biggest maker of health care products reported net income of $5.61 billion, or $2.08 per share, helped by $1.68 billion in one-time income, primarily from the sale of its Advanced Sterilization Products business. A year ago, J&J reported net income of $3.954 billion, or $1.45 per share.
Earnings, adjusted for one-time gains and costs, came to $2.58 per share, or 16 cents above analyst projections.
Global prescription medicine sales increased 1.7 % to $10.53 billion, led by big increases in sales of cancer drugs Imbruvica and Velcade and $1.6 billion in sales for immune disorder drug Stelara, one of 10 J&J drugs with annual sales topping $1 billion. Remicade, an older immune disorder blockbuster that is facing increased competition, saw revenue drop 16 % to $1.11 billion.
Sales of consumer health products including Tylenol and the Neutrogena and Aveeno skin care lines edged up 1.2 % to $3.54 billion. But sales of J&J’s medical devices and diagnostic equipment, which has been going through restructuring for a couple years, fell 6.5 % to $6.49 billion.
The New Brunswick, New Jersey, company boosted its full-year sales forecast to a range of $80.8 billion to $81.6 billion, up from its April forecast of $80.6 billion to $81.2 billion.
J&J reaffirmed its April forecast for full-year earnings in the range of $8.53 to $8.63 per share. Industry analysts have projected per-share annual earnings of $8.61.
In premarket trading, J&J shares jumped 98 cents to $135.65.
