J&J Q3 profit drops 7% on higher research, production costs
October 18, 2012, 12:06 am TWN
By 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.
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.