Multinational manufacturer Johnson & Johnson has reported a sharp drop in its fourth-quarter figures. Net profit fell by 89 per cent to $218 million for the fourth quarter. However, making adjustments for charges meant its profit was up 9.7 per cent to $1.13 a share.
Sales rose 3.9 per cent to $16.26 billion while pharmaceutical sales increased by 6.7 per cent to $6.09 billion. Consumer unit sales grew by 1.3 per cent to $3.67 billion; J&J’s medical-devices and diagnostics unit saw its sales increase by 2.7 per cent to $6.49 billion. Growth in oral-care and skin-care products helped the company to offset the drop in over-the-counter drug sales across the US. The company said it suffered legal settlements costs and product-liability costs, but added that it expects results to improve as the fall in medical spending begins to reverse in 2012. The company predicted that revenue in 2012 would grow by 2 per cent to $66.5 billion. Net profit is expected to grow to $5.05-$5.15 a share.
“People are going to be coming back to the doctor, so we’re going to continue to invest in those areas and hopefully when these patients come back, we’ll be able to capture more of the market,” said CEO William Weldon. (25 Jan)
© 2012 ESM: European Supermarket Magazine
