J&J Q3 profit drops 7% on higher research, production costs
APBy Linda A. Johnson--Johnson & Johnson's third-quarter profit fell 7 percent as increased research and production costs offset higher sales for its medicines and medical devices and new revenue from its biggest acquisition ever.
October 18, 2012, 12:06 am TWN
The maker of Tylenol, baby shampoo and prescription drugs said Tuesday that its net income was US$2.97 billion, or US$1.05 per share. That's down from US$3.2 billion, of US$1.15 per share, in 2011's third quarter.
Excluding one-time charges for research, the acquisition and litigation, earnings were US$3.5 billion, or US$1.25 per share.
Revenue rose 6.5 percent to US$17.05 billion, boosted nearly 6 percent by sales from Synthes Inc., a maker of surgical trauma equipment and orthopedic implants that J&J bought for US$19.7 billion in June.
The results beat Wall Street expectations for earnings of US$1.21 per share on revenue of US$17.01 billion.