J&J 2Q profit jumps on higher sales, lower charges

July 16, 2013
In this Monday, July 15, 2013 photo, Johnson & Johnson baby products are shown for sale at a pharmacy in Miami. Johnson & Johnson reports quarterly earnings on Tuesday, July 16, 2013. (AP Photo/Lynne Sladky)

Health care giant Johnson & Johnson's second-quarter profit more than doubled, thanks to higher sales of medicines and medical devices as it recovers from recalls and manufacturing problems that cut into sales.

The comparison was made easier by last year's quarter being hurt by $2.2 billion in charges for an acquisition, litigation and asset writedowns.

The maker of baby shampoo, prescription drugs and medical devices handily beat Wall Street expectations and raised its forecast by a couple of cents.

New Brunswick, New Jersey-based J&J said net income was $3.83 billion, or $1.33 per share, up from $1.41 billion, or 50 cents per share, a year earlier.

Excluding one-time items, net income was $4.29 billion, or $1.48 per share.

Revenue was $17.88 billion, up 8.5 percent from $16.48 billion a year earlier.

Analysts polled by FactSet, on average, were expecting earnings per share of $1.39 and sales of $17.72 billion.

CEO Alex Gorsky said the results showed progress in "restoring a reliable suply of over-the-counter products to consumers, continuing the successful integration of Synthes and building on the momentum of our pharmaceutical business."

The company is still trying to resolve manufacturing problems that have led to about four dozen recalls since 2009, mostly of consumer health products such as Tylenol and Motrin.

Reduced sales of the recalled products, plus the factory upgrades and increased regulatory inspections, have cost J&J well over $1 billion and kept many products out of stores. The company has repeatedly pushed back its forecast for when all the recalled nonprescription medicines will be back on store shelves, now aiming to have about 75 percent of those products back in stores by year's end.

Meanwhile, the company's revenue has been boosted by its $19.7 billion acquisition of surgical trauma equipment and orthopedic implants maker Synthes Inc. last June.

Sales of medical devices and diagnostics, J&J's largest segment, climbed 9.6 percent to $7.19 billion in the quarter.

Prescription drug sales jumped nearly 12 percent to $7.03 billion, led by strong sales of immune disorder drug Remicade and prostate cancer drug Zytiga.

Sales of consumer health products edged up just 1.1 percent, to $3.66 billion.

The company raised its profit forecast to $5.40 to $5.47 per share, excluding one-time items. In January, J&J said it expected earnings of $5.35 to $5.45 per share.

The company noted that unfavorable currency exchange rates reduced revenue by 1.5 percent.

Explore further: J&J Q3 net income drops 7 percent on higher costs

Related Stories

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

October 16, 2012
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.

J&J 4Q profit jumps on higher sales, lower charges (Update)

January 22, 2013
Higher sales of prescription drugs and medical devices helped Johnson & Johnson post a much bigger fourth-quarter profit than a year ago, when a slew of charges depressed results.

Generic competition cuts Merck's Q1 sales, profit

May 1, 2013
Drugmaker Merck & Co. is reporting lower first-quarter results and cutting its 2013 profit forecast by 15 cents a share. It also is announcing a huge share buyback, up to $15 billion worth of its stock.

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 ...

Sanofi earnings slashed in first quarter

May 2, 2013
(AP)—French drug maker Sanofi said Thursday its net profit was slashed in the first quarter from a year earlier as falling sales and patent losses on key drugs combined to hammer earnings.

Recommended for you

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 ...

Team eradicates hepatitis C in 10 patients following lifesaving transplants from infected donors

April 30, 2017
Ten patients at Penn Medicine have been cured of the Hepatitis C virus (HCV) following lifesaving kidney transplants from deceased donors who were infected with the disease. The findings point to new strategies for increasing ...

'bench to bedside to bench': Scientists call for closer basic-clinical collaborations

March 24, 2017
In the era of genome sequencing, it's time to update the old "bench-to-bedside" shorthand for how basic research discoveries inform clinical practice, researchers from The Jackson Laboratory (JAX), National Human Genome Research ...

The ethics of tracking athletes' biometric data

January 18, 2017
(Medical Xpress)—Whether it is a FitBit or a heart rate monitor, biometric technologies have become household devices. Professional sports leagues use some of the most technologically advanced biodata tracking systems to ...

Financial ties between researchers and drug industry linked to positive trial results

January 18, 2017
Financial ties between researchers and companies that make the drugs they are studying are independently associated with positive trial results, suggesting bias in the evidence base, concludes a study published by The BMJ ...

Best of Last Year – The top Medical Xpress articles of 2016

December 23, 2016
(Medical Xpress)—It was a big year for research involving overall health issues, starting with a team led by researchers at the UNC School of Medicine and the National Institutes of Health who unearthed more evidence that ...

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.