J&J Q3 net income drops 7 percent on higher costs

October 16, 2012 by Linda A. Johnson
In this Monday, July 16, 2012, photo, Johnson & Johnson products are displayed in Orlando, Fla. 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. (AP Photo/John Raoux, File)

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 $2.97 billion, or $1.05 per share. That's down from $3.2 billion, of $1.15 per share, in 2011's third quarter.

Excluding one-time charges for research, the acquisition and litigation, earnings were $3.5 billion, or $1.25 per share.

Revenue rose 6.5 percent to $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 $19.7 billion in June.

The results beat Wall Street expectations for earnings of $1.21 per share on revenue of $17.01 billion.

J&J, based in New Brunswick, New Jersey, raised its full-year profit forecast and now expects earnings per share of $5.05 to $5.10, excluding one-time items. That's up from its July forecast of $5 to $5.07.

J&J's stock rose 83 cents to $69.43 in midday trading.

"Our third-quarter results reflected continued sales momentum driven by strong growth of key products, successful new product launches, and the addition of Synthes to our family of companies. We advanced our pipelines with regulatory approvals for a number of new products, the submission of several new drug applications and the completion of several strategic collaborations," CEO Alex Gorsky said in a statement.

Sales of medical devices and diagnostic equipment, which is J&J's biggest division and now includes the Synthes business, jumped 12.5 percent to $7.07 billion.

Prescription drug sales climbed 7 percent to $6.4 billion.

But sales of consumer health products fell 4.3 percent, to $3.58 billion. They continue to be weighed down by about 30 product recalls since September 2009. That's kept many of its nonprescription medicines off store shelves as J&J rebuilds one factory from the ground up and upgrades another under heavy scrutiny from the Food and Drug Administration.

J&J's U.S. sales rose 13 percent to $7.79 billion, while sales in other countries inched up 1.4 percent to $9.26 billion. The company noted that unfavorable currency exchange results reduced total revenue by 4.3 percent.

Explore further: Merck's 2Q net falls on charges, but sales rise

shares

Related Stories

Merck's 2Q net falls on charges, but sales rise

July 27, 2012
Merck & Co.'s second-quarter net income fell 11.4 percent as slightly higher sales were offset by acquisition and restructuring costs. However, the drugmaker beat Wall Street expectations, and Merck shares jumped in early ...

Qualcomm 3Q results beat Wall Street estimates

July 20, 2011
(AP) -- Wireless chip-maker Qualcomm Inc.'s results for the latest quarter beat Wall Street's expectations, and its projections for the current quarter are also above analysts' estimates.

Recommended for you

Best of Last Year—The top Medical Xpress articles of 2017

December 20, 2017
It was a good year for medical research as a team at the German center for Neurodegenerative Diseases, Magdeburg, found that dancing can reverse the signs of aging in the brain. Any exercise helps, the team found, but dancing ...

Pickled in 'cognac', Chopin's heart gives up its secrets

November 26, 2017
The heart of Frederic Chopin, among the world's most cherished musical virtuosos, may finally have given up the cause of his untimely death.

Sugar industry withheld evidence of sucrose's health effects nearly 50 years ago

November 21, 2017
A U.S. sugar industry trade group appears to have pulled the plug on a study that was producing animal evidence linking sucrose to disease nearly 50 years ago, researchers argue in a paper publishing on November 21 in the ...

Female researchers pay more attention to sex and gender in medicine

November 7, 2017
When women participate in a medical research paper, that research is more likely to take into account the differences between the way men and women react to diseases and treatments, according to a new study by Stanford researchers.

Drug therapy from lethal bacteria could reduce kidney transplant rejection

August 3, 2017
An experimental treatment derived from a potentially deadly microorganism may provide lifesaving help for kidney transplant patients, according to an international study led by investigators at Cedars-Sinai.

Exploring the potential of human echolocation

June 25, 2017
People who are visually impaired will often use a cane to feel out their surroundings. With training and practice, people can learn to use the pitch, loudness and timbre of echoes from the cane or other sounds to navigate ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.