Johnson & Johnson reports decline in Q1 earnings
NEW BRUNSWICK, N.J. Even the big brands are feeling the economic slump.
Johnson & Johnson announced Tuesday sales of $15 billion for the first quarter of 2009, a decrease of 7.2%, compared with the first quarter of 2008.
Operational results declined 1.2% and the negative impact of currency was 6%. Domestic sales declined 5%, while international sales declined 9.6%, reflecting operational growth of 3% and a negative currency impact of 12.6%.
Net earnings for the first quarter of 2009 were $3.5 billion, representing a decrease of 2.5%, compared with the same period in 2008. Diluted earnings per share for the first quarter of 2009 were $1.26, the same versus a year ago. The company confirmed its earnings guidance for full-year 2009 of $4.45 - $4.55 per share, which excludes the impact of special items.
“Despite challenging economic and near term business pressures, we continue to deliver solid financial results,” said William C. Weldon, chairman and CEO. “We are continuing to make strategic investments in order to bring important new products to market, positioning us well for long-term growth.”
Worldwide consumer sales of $3.7 billion for the first quarter represented a decrease of 8.7%, versus the prior year with a decline of 1% operationally and a negative impact from currency of 7.7%. Domestic sales decreased 5.1%, while international sales decreased 11.6%; which reflected an operational increase of 2.4% and a negative currency impact of 14.0%.
Listerine antiseptic mouth rinse, and skin care lines of Neutrogena and Aveeno, had strong sales performance during the quarter. Also contributing were sales from the recently completed acquisition of Dabao, the leading moisturizer in China. Sales comparisons were negatively impacted due to the initial build of inventory by the trade related to the 2008 launch of Zyrtec.
Meanwhile, worldwide pharmaceutical sales of $5.8 billion for the first quarter represented a decrease versus the prior year of 10.1% with an operational decline of 5.1% and a negative impact from currency of 5%. Domestic sales decreased 9.7%, while international sales decreased 10.7%; which reflected an operational increase of 2.8% and a negative currency impact of 13.5%.