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Johnson & Johnson profit beats the Street on higher drug sales

Published: 23:53 16 Apr 2013 AEST

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Johnson & Johnson (NYSE:JNJ) Tuesday reported first quarter earnings that came in ahead of analysts’ expectations despite a decline, as sales of its over-the-counter products rose and global pharmaceuticals sales increased 10.4 per cent.

For the first quarter, the company posted a profit of $3.5 billion or $1.22 per share, down from $3.9 billion or $1.41 a share, a year ago. 

Excluding special items of $0.6 billion in the latest period, net earnings were $4.1 billion and diluted earnings per share were $1.44, up from $3.8 billion or $1.37 per share a year earlier.

The health care product maker reported revenue of $17.5 billion, an increase of 8.5 per cent year-over-year.

Analysts polled by Thomson Reuters expected Johnson & Johnson to earn $1.40 a share on revenue of $17.44 billion. 

"We delivered solid first quarter results led by the success of many of our recently launched pharmaceutical products and the addition of Synthes to our orthopaedics business,” said chairman and CEO Alex Gorsky.

“Also of note is the growth in our over-the-counter medicines business as we continue to make progress in returning a reliable supply of high quality products to our customers.”

Operational results grew 9.8 per cent and the negative impact of currency was 1.3 per cent.  Domestic sales improved 11.2 per cent, while international sales increased 6.3 per cent on operational growth of 8.7 per cent and a negative currency impact of 2.4 per cent.  

Johnson & Johnson said that sales included the impact of its acquisition of Synthes Inc., net of the divestiture of its DePuy trauma business, which contributed 5.7 per cent to worldwide operational sales growth. 

Consumer sales globally rose 2.2 per cent to $3.7 billion in the quarter, while domestic consumer sales added 2.4 per cent. International consumer sales increased 2.1 per cent.

The company confirmed its full-year 2013 earnings guidance of $5.35 to $5.45 per share, excluding the impact of special items. Analysts are calling for per share earnings of $5.40.

Shares in Johnson & Johnson were up 1.1 as at about 10 a.m. EDT, trading at $82.61.

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