Johnson & Johnson reports 2012 Q2 results

Singapore: Johnson & Johnson reported sales worth $16.5 billion for the second quarter of 2012, which is a decrease of 0.7 percent as compared to the second quarter of 2011. Operational results increased 3.5 percent and the negative impact of currency was 4.2 percent.

Domestic sales decreased 1.2 percent and international sales witnessed a decrease of 0.4 percent, reflecting operational growth of 7.1 percent and a negative currency impact of 7.5 percent. Sales included the impact of the recently completed acquisition of Synthes, which contributed 1.2 percent to worldwide operational sales growth.

Net earnings and diluted earnings per share for Q2 2012 were $1.4 billion and $0.50, respectively. Second-quarter 2011 net earnings included after-tax special items of $772 million, consisting of net charges related to the restructuring by Cordis Corporation, the net impact of expenses related to litigation, DePuy ASR Hip recall costs, and a currency adjustment related to the acquisition of Synthes.

Mr Alex Gorsky, CEO, J&J, said that, "Our pharmaceutical pipeline continued its strong momentum this quarter with the submission of several new drug applications, as well as strong growth from several recently launched products that meet critical patient needs."

The company adjusted its earnings guidance for full-year 2012 to $5.00-to-$5.07 per share. Positive contributors to operational results were international sales of oral care products; NEUTROGENA skin care products; and international baby care products. Primary contributors to operational growth were orthopaedic sales from the recently completed acquisition of Synthes; Biosense Webster's electrophysiology products in the cardiovascular care business; Ethicon's wound care products in the general surgery business; LifeScan's blood glucose monitoring products in the diabetes care business; and international sales of energy products in the specialty surgery business.

The growth was impacted by lower sales in the cardiovascular care business, reflecting the decision to exit the drug eluting stent market at the end of the second quarter of 2011.

During the quarter, the company announced the completion of the acquisition of Synthes for $19.7 billion in cash and stock, creating the world's most innovative and comprehensive orthopaedics business. In addition, Johnson & Johnson (China) Investment completed its first medical device acquisition in China, Guangzhou Bioseal Biotech, a privately held biopharmaceutical company specializing in the design, development and commercialization of a porcine plasma-derived biologic product for controlling bleeding during surgery.