Johnson & Johnson second-quarter profit drops 20 percent, still beats expectations
APTRENTON, New Jersey--Health care giant Johnson & Johnson said Tuesday that its second-quarter profit fell nearly 20 percent due to restructuring, recall and litigation costs, and higher spending on overhead and research.
July 20, 2011, 12:14 am TWN
The results still topped Wall Street expectations.
The maker of Band-Aids, biologic medicines and birth control pills said its net income was US$2.78 billion, or US$1 per share. That's down from US$3.45 billion, or US$1.23 per share, in the 2010 second quarter.
Revenue rose 8.3 percent, to US$16.6 billion from US$15.33 billion a year ago.
Excluding one-time items, income would have been US$3.55 billion, or US$1.28 per share.
Analysts polled by FactSet, on average, were expecting earnings per share of US$1.24 and sales of US$16.21 billion.
The company, which recently earned approval for three new prescription drugs, noted recent product launches have gone well.
J&J has been under pressure over a string of more than 25 product recalls that have especially cut into consumer product sales.
But the New Brunswick, New Jersey, company maintained its profit forecast for 2011, at US$4.90 to US$5 per share. That excludes the impact of one-time items.
Analysts expect US$4.95 per share, on average.
Sales were up in all three of its businesses, led by prescription drugs, which saw sales jump 12 percent to US$6.23 billion. That was mainly due to higher drug sales overseas and a big benefit from favorable currency exchange rates.