Sales of $16.2 Billion Increased 7.7% Versus a Year Ago; EPS was $1.26
Excluding 2007 Special Charges, 2008 First-Quarter EPS Increased 8.6%*
NEW BRUNSWICK, N.J., April 15 /PRNewswire-FirstCall/ -- Johnson &
Johnson today announced record sales of $16.2 billion for the first quarter
of 2008, an increase of 7.7% as compared to the first quarter of 2007.
Operational growth was 2.6% and currency contributed 5.1%. Domestic sales
were up 2.8%, while international sales increased 13.7%, reflecting
operational growth of 2.4% and a positive currency impact of 11.3%.
Net earnings and diluted earnings per share for the first quarter of
2008 were $3.6 billion and $1.26, respectively. The first quarter of 2007
included an after-tax in-process research and development charge of $807
million associated with the acquisition of Conor Medsystems, Inc. Excluding
this charge, net earnings for the current quarter and diluted earnings per
share represent increases of 6.4% and 8.6%, respectively, as compared to
the same period in 2007. * The Company raised its earnings guidance for
full-year 2008 to $4.40 - $4.45 per share, which does not include the
impact of any in- process research and development charges or other special
items.
"We achieved solid earnings in the first quarter which reflects our
continued focus on profitable growth for Johnson & Johnson," said William
C. Weldon, Chairman and Chief Executive Officer. "Our strategy of being
broadly based remains one of the keys to our consistent long-term
performance."
Worldwide Consumer sales of $4.1 billion for the first quarter
represented a 16.2% increase over the prior year with operational growth of
9.9% and a positive impact from currency of 6.3%. Domestic sales increased
11.7%, while international sales increased 20.2% (8.3% from operations and
11.9% from currency).
Sales results reflect the strong performance of the U.S. launch of
ZYRTEC, an over-the-counter allergy treatment; LISTERINE antiseptic
mouthrinse and whitening products; Baby Care products; and the skin care
lines of NEUTROGENA, CLEAN & CLEAR, and AVEENO.
Worldwide Pharmaceutical sales of $6.4 billion for the first quarter
represented an increase over the prior year of 3.3% with an operational
decline of .6% and a positive impact from currency of 3.9%. Domestic sales
increased .9%, while international sales increased 7.9%, which reflected an
operational decline of 3.1% and a positive currency impact of 11.0%.
Sales growth reflects the strong performance of REMICADE, a biologic
approved for the treatment of a number of immune mediated inflammatory
diseases; VELCADE, a treatment for multiple myeloma; RISPERDAL CONSTA
outside the U.S., an antipsychotic medication; and CONCERTA, a treatment
for attention deficit hyperactivity disorder.
Growth was negatively impacted by lower sales of PROCRIT, a product for
the treatment of anemia, due to a decline in the market. Generic
competition in certain markets also impacted sales results for RISPERDAL
Oral, an antipsychotic medication, and DURAGESIC, a transdermal patch for
chronic pain. In addition, ACIPHEX/PARIET, a proton pump inhibitor for
gastrointestinal disorders, was negatively impacted by generic launches of
competitive products in this market.
During the quarter, the Company announced that it received an
approvable letter from the U.S. Food and Drug Administration (FDA)
regarding its New Drug Application for ceftobiprole for the treatment of
complicated skin and skin structure infections, including diabetic foot
infections.
The Company also submitted a New Drug Application to the FDA for
tapentadol hydrochloride immediate release tablets, an investigational oral
analgesic for the relief of moderate to severe acute pain. In addition, the
Company submitted a Marketing Authorization Application to the European
Medicines Agency requesting the approval of golimumab (CNTO 148) as a
monthly subcutaneous treatment for adults with rheumatoid arthritis,
psoriatic arthritis and ankylosing spondylitis.
Worldwide Medical Devices and Diagnostics sales of $5.7 billion for the
first quarter represented a 7.2% increase over the prior year with
operational growth of 1.4% and a positive impact from currency of 5.8%.
Domestic sales increased .2%, while international sales increased 13.8%
(2.6% from operations and 11.2% from currency).
Primary contributors to the operational growth included Vistakon's
disposable contact lenses; Ethicon Endo-Surgery's minimally invasive
products; LifeScan's blood glucose monitoring and Animas's insulin delivery
products. Growth was negatively impacted by lower sales of drug-eluting
stents in our Cordis franchise due to new competitive entries as well as a
decline in the market versus the prior year.
During the quarter, the Company submitted a Premarket Approval
application to the FDA for the SEDASYS System, the first computer-assisted
personalized sedation system.
About Johnson & Johnson
Caring for the world one person at a time inspires and unites the
people of Johnson & Johnson. We embrace research and science - bringing
innovative ideas, products and services to advance the health and
well-being of people. Our 119,500 employees at more than 250 Johnson &
Johnson companies work with partners in health care to touch the lives of
over a billion people every day, throughout the world.
* Net earnings and diluted earnings per share excluding after-tax in-
process research and development charges are non-GAAP financial measures
and should not be considered replacements for GAAP results. For a
reconciliation of these non-GAAP financial measures to the most directly
comparable GAAP financial measures, see the accompanying tables to this
release.
NOTE TO INVESTORS
Johnson & Johnson will conduct a conference call with financial
analysts to discuss this news release today at 8:30 a.m., Eastern Time. A
simultaneous webcast of the call for investors and other interested parties
may be accessed by visiting the Johnson & Johnson website at
http://www.investor.jnj.com. A replay and podcast will be available approximately
two hours after the live webcast by visiting http://www.investor.jnj.com.
Copies of the financial schedules accompanying this press release are
available at http://www.investor.jnj.com/historical-sales.cfm. The schedules
include supplementary sales data, a condensed consolidated statement of
earnings, and sales of key products/franchises.
Additional information on Johnson & Johnson can be found on the
Company's website at http://www.jnj.com.
(This press release contains "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. These statements are
based on current expectations of future events. If underlying assumptions
prove inaccurate or unknown risks or uncertainties materialize, actual
results could vary materially from Johnson & Johnson's expectations and
projections. Risks and uncertainties include general industry conditions
and competition; economic conditions, such as interest rate and currency
exchange rate fluctuations; technological advances and patents attained by
competitors; challenges inherent in new product development, including
obtaining regulatory approvals; domestic and foreign health care reforms
and governmental laws and regulations; and trends toward health care cost
containment. A further list and description of these risks, uncertainties
and other factors can be found in Exhibit 99 of the Company's Annual Report
on Form 10-K for the fiscal year ended December 30, 2007. Copies of this
Form 10-K, as well as subsequent filings, are available online at
http://www.sec.gov, http://www.jnj.com or on request from Johnson & Johnson. Johnson &
Johnson does not undertake to update any forward- looking statements as a
result of new information or future events or developments.)
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) FIRST QUARTER
Percent
Change
2008 2007 Total Operations Currency
Sales to customers by
segment of business
Consumer
U.S. $1,819 1,629 11.7 % 11.7 -
International 2,245 1,867 20.2 8.3 11.9
4,064 3,496 16.2 9.9 6.3
Pharmaceutical
U.S. 4,070 4,034 0.9 0.9 -
International 2,359 2,187 7.9 (3.1) 11.0
6,429 6,221 3.3 (0.6) 3.9
Med Devices & Diagnostics
U.S. 2,588 2,584 0.2 0.2 -
International 3,113 2,736 13.8 2.6 11.2
5,701 5,320 7.2 1.4 5.8
U.S. 8,477 8,247 2.8 2.8 -
International 7,717 6,790 13.7 2.4 11.3
Worldwide $16,194 15,037 7.7 % 2.6 5.1
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) FIRST QUARTER
Percent
Change
2008 2007 Total Operations Currency
Sales to customers by
geographic area
U.S. $8,477 8,247 2.8% 2.8 -
Europe 4,308 3,812 13.0 0.8 12.2
Western Hemisphere excluding U.S. 1,245 1,046 19.0 6.2 12.8
Asia-Pacific, Africa 2,164 1,932 12.0 3.2 8.8
International 7,717 6,790 13.7 2.4 11.3
Worldwide $16,194 15,037 7.7% 2.6 5.1
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except
Per Share Figures) FIRST QUARTER
2008 2007
Percent Percent Percent
to to Increase
Amount Sales Amount Sales (Decrease)
Sales to customers $16,194 100.0 $15,037 100.0 7.7
Cost of products sold 4,614 28.5 4,385 29.1 5.2
Selling, marketing and
administrative expenses 5,123 31.6 4,802 31.9 6.7
Research expense 1,712 10.6 1,652 11.0 3.6
In-process research &
development - - 807 5.4
Interest (income)expense, net 16 0.1 (33) (0.2)
Other (income)expense, net (18) (0.1) (228) (1.5)
Earnings before provision for
taxes on income 4,747 29.3 3,652 24.3 30.0
Provision for taxes on income 1,149 7.1 1,079 7.2 6.5
Net earnings $3,598 22.2 $2,573 17.1 39.8
Net earnings per share
(Diluted) $1.26 $0.88 43.2
Average shares outstanding
(Diluted) 2,866.3 2,924.3
Effective tax rate 24.2% 29.5%
Adjusted earnings before
provision for taxes and net
earnings
Earnings before provision
for taxes on income $4,747 29.3 $4,459 (1) 29.7 6.5
Net earnings $3,598 22.2 $3,380 (1) 22.5 6.4
Net earnings per share
(Diluted) $1.26 $1.16 (1) 8.6
Effective tax rate 24.2% 24.2%
(1) The difference between as reported earnings and as adjusted earnings
before provision for taxes, net earnings and earnings per share
(diluted) is the exclusion of IPR&D of $807 million with no tax
benefit and $0.28 per share, respectively.
REPORTED SALES vs. PRIOR PERIOD
$MM
FIRST QUARTER
% Change
2008 2007 Reported Operational(1) Currency
PHARMACEUTICAL SEGMENT(2)(3)
ACIPHEX/PARIET
US 116 159 -27.0% -27.0% -
Intl 161 177 -9.0% -19.4% 10.4%
WW 277 336 -17.6% -23.1% 5.5%
CONCERTA
US 224 200 12.0% 12.0% -
Intl 66 52 26.9% 14.8% 12.1%
WW 290 252 15.1% 12.6% 2.5%
DURAGESIC/FENTANYL TRANSDERMAL
US 75 116 -35.3% -35.3% -
Intl 158 187 -15.5% -24.2% 8.7%
WW 233 303 -23.1% -28.5% 5.4%
LEVAQUIN/FLOXIN
US 474 459 3.3% 3.3% -
Intl 22 20 10.0% 4.0% 6.0%
WW 496 479 3.5% 3.3% 0.2%
PROCRIT/EXPREX
US 334 530 -37.0% -37.0% -
Intl 295 287 2.8% -9.3% 12.1%
WW 629 817 -23.0% -27.2% 4.2%
RAZADYNE/REMINYL
US 50 51 -2.0% -2.0% -
Intl 99 77 28.6% 13.6% 15.0%
WW 149 128 16.4% 7.4% 9.0%
REMICADE
US 676 600 12.7% 12.7% -
US Exports(4) 320 131 144.3% 144.3% -
Intl 2 0 436.0% 410.7% 25.3%
WW 998 731 36.5% 36.5% -
RISPERDAL
US 582 559 4.1% 4.1% -
Intl 227 308 -26.3% -33.6% 7.3%
WW 809 867 -6.7% -9.3% 2.6%
RISPERDAL CONSTA
US 101 101 0.0% 0.0% -
Intl 208 160 30.0% 15.8% 14.2%
WW 309 261 18.4% 9.7% 8.7%
TOPAMAX
US 520 501 3.8% 3.8% -
Intl 126 109 15.6% 4.2% 11.4%
WW 646 610 5.9% 3.9% 2.0%
VELCADE
US 2 2 0.0% 0.0% -
Intl 182 111 64.0% 49.9% 14.1%
WW 184 113 62.8% 48.9% 13.9%
OTHER
US 596 625 -4.6% -4.6% -
Intl 813 699 16.3% 2.8% 13.5%
WW 1,409 1,324 6.4% -0.7% 7.1%
TOTAL PHARMACEUTICAL
US 4,070 4,034 0.9% 0.9% -
Intl 2,359 2,187 7.9% -3.1% 11.0%
WW 6,429 6,221 3.3% -0.6% 3.9%
(1) Operational growth excludes the effect of currency
(2) Select areas (unaudited)
(3) Prior year amounts have been reclassified to conform with current
presentation
(4) For external purposes, reported as U.S. sales
REPORTED SALES vs. PRIOR PERIOD
$MM
FIRST QUARTER
% Change
2008 2007 Reported Operational(1) Currency
MEDICAL DEVICES AND DIAGNOSTICS(2)(3)
CORDIS(4)
US 357 424 -15.8% -15.8% -
Intl 478 504 -5.2% -14.7% 9.5%
WW 835 928 -10.0% -15.2% 5.2%
DEPUY
US 694 678 2.4% 2.4% -
Intl 559 479 16.7% 5.6% 11.1%
WW 1,253 1,157 8.3% 3.7% 4.6%
DIABETES CARE
US 303 292 3.8% 3.8% -
Intl 312 257 21.4% 8.0% 13.4%
WW 615 549 12.0% 5.7% 6.3%
ETHICON(5)
US 341 345 -1.2% -1.2% -
Intl 604 529 14.2% 2.9% 11.3%
WW 945 874 8.1% 1.3% 6.8%
ETHICON ENDO-SURGERY
US 429 417 2.9% 2.9% -
Intl 574 474 21.1% 8.9% 12.2%
WW 1,003 891 12.6% 6.1% 6.5%
ORTHO-CLINICAL DIAGNOSTICS(5)
US 238 233 2.1% 2.1% -
Intl 205 175 17.1% 5.2% 11.9%
WW 443 408 8.6% 3.5% 5.1%
VISION CARE
US 226 195 15.9% 15.9% -
Intl 381 318 19.8% 9.2% 10.6%
WW 607 513 18.3% 11.7% 6.6%
TOTAL MEDICAL DEVICES AND
DIAGNOSTICS
US 2,588 2,584 0.2% 0.2% -
Intl 3,113 2,736 13.8% 2.6% 11.2%
WW 5,701 5,320 7.2% 1.4% 5.8%
(1) Operational growth excludes the effect of currency
(2) Select areas (unaudited)
(3) Prior year amounts have been reclassified to conform with current
presentation
(4) Includes sale of Cypher for Q1 2008 of $169, $231 and $400 million
Domestic, International and Worldwide respectively Includes sale of
Cypher for Q1 2007 of $236, $292 and $528 million Domestic,
International and Worldwide respectively
(5) Restated to include portion of sales previously reported in the
"Other" category
REPORTED SALES vs. PRIOR PERIOD
$MM
FIRST QUARTER
% Change
2008 2007 Reported Operational(1) Currency
CONSUMER SEGMENT(2)
SKIN CARE
US 382 357 7.0% 7.0% -
Intl 458 407 12.5% 1.5% 11.0%
WW 840 764 9.9% 4.0% 5.9%
BABY CARE
US 115 109 5.5% 5.5% -
Intl 418 338 23.7% 12.9% 10.8%
WW 533 447 19.2% 11.1% 8.1%
ORAL CARE
US 199 203 -2.0% -2.0% -
Intl 187 156 19.9% 9.4% 10.5%
WW 386 359 7.5% 2.9% 4.6%
OTC/NUTRITIONALS
US 842 655 28.5% 28.5% -
Nutritional
Intl 752 602 24.9% 11.8% 13.1%
WW 1,594 1,257 26.8% 20.5% 6.3%
WOMEN'S HEALTH
US 148 163 -9.2% -9.2% -
Intl 313 258 21.3% 8.8% 12.5%
WW 461 421 9.5% 1.8% 7.7%
WOUND CARE / OTHER
US 133 142 -6.3% -6.3% -
Intl 117 106 10.4% -1.4% 11.8%
WW 250 248 0.8% -4.2% 5.0%
TOTAL CONSUMER
US 1,819 1,629 11.7% 11.7% -
Intl 2,245 1,867 20.2% 8.3% 11.9%
WW 4,064 3,496 16.2% 9.9% 6.3%
(1) Operational growth excludes the effect of currency
(2) Select areas (unaudited)
SOURCE Johnson & Johnson
 back to top
Related links:
http://www.jnj.com
http://www.investor.jnj.com
http://www.prnewswire.com/comp/467347.html /
CONTACT:
Press, Jeffrey J. Leebaw, +1-732-524-3350,
(mobile) +1-732-642-6608, or Bill Price, +1-732-524-6623,
(mobile) +1-732-668-3735, Investors, Louise Mehrotra,
+1-732-524-6491, Stan Panasewicz, +1-732-524-2524, Lesley
Fishman, +1-732-524-3922, Tina Pinto, +1-732-524-2034, all of
Johnson & Johnson
|
