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JOHNSON & JOHNSON THIRD QUARTER EARNINGS PER SHARE INCREASE 11.1 PERCENT; SALES FLAT DUE TO STRONG U.S. DOLLAR

 NEW BRUNSWICK, N.J., Oct. 20 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $3.51 billion for the third quarter of 1993, an increase of .7 percent over 1992 third quarter sales of $3.48 billion. The effect of the stronger dollar relative to foreign currencies reduced third quarter sales by 6.4 percent. Excluding the negative impact of currency translation, worldwide sales grew 7.1 percent.
 For the third quarter, sales in the U.S. increased 5.2 percent while reported sales elsewhere in the Western Hemisphere and in Africa, Asia and the Pacific grew 9 percent and 16 percent, respectively. However, sales declined 14 percent in Europe due to negative currency translation of nearly 20 percentage points.
 Consolidated net earnings for the third quarter were $454 million, compared with $414 million for the same period a year ago, an increase of 9.7 percent. Earnings before taxes increased 2.5 percent for the third quarter. Earnings per share for the period were $.70, compared with $.63 per share for the same period a year ago, an increase of 11.1 percent. Net earnings were favorably impacted by a lower effective tax rate for the period, while earnings per share were enhanced by lower outstanding shares of common stock versus a year ago. Earlier this year, the company announced a $500 million share repurchase program, which is currently in progress.
 Ralph S. Larsen, chairman and chief executive officer, stated: "Our overall reported sales growth was significantly slowed by the strength of the U.S. dollar versus other currencies, but we were pleased with our growth as measured in local currencies. Weak economies in many of our major international markets coupled with health care systems reform have continued to adversely impact our growth in major European markets as well as the U.S. market. Despite these adversities, strong performance was registered in local currencies by many of our businesses. For example, the worldwide less-invasive surgery business registered outstanding growth year-to-year and expanded its market share. Also of particular note is the 12.8 percent increase in revenues of our U.S. pharmaceutical business, which benefited from the introduction of PROPULSID, a gastrointestinal product, which was approved by the Food and Drug Administration during the quarter. In addition, sales growth was aided by new products introduced within the last twelve months such as: ORTHO-CYCLEN, ORTHO TRI-CYCLEN AND ORTHO-CEPT oral contraceptives; LEUSTATIN, for treatment of hairy cell leukemia; SPORANOX, an antifungal; expanded indication for OKT-3 for treatment of organ transplant rejection; and PROCRIT, which received approval earlier this year for expanded use to treat anemia associated with chemotherapy.
 "Johnson & Johnson is committed to maintaining its leadership position in the health care industry through the introduction of new innovative cost-effective products," noted Mr. Larsen.
 Pharmaceutical sales for the third quarter increased 1.6 percent worldwide. Domestic pharmaceutical sales increased 12.8 percent due to sales gains in PROCRIT, LEUSTATIN, SPORANOX, oral contraceptive products, FLOXIN, an antibiotic, DURAGESIC, the transdermal patch for chronic cancer pain, and the introduction of PROPULSID. International pharmaceutical sales declined 4.9 percent for the period due to a strong U.S. dollar relative to local currencies and adjustments in health care systems in many major international markets. Nevertheless, in local currencies, international pharmaceutical sales increased in the high single-digit range.
 Domestic professional sales, for the third period, increased 6.1 percent, while worldwide professional sales were up 2.8 percent. The domestic sales growth was led by the rapid expansion of the less- invasive surgery business, solid growth from the ACUVUE Disposable Contact Lens business, further market penetration of the ONE TOUCH II Blood Glucose Monitoring System, and the orthopaedics business. Despite these sales gains, domestic professional sales growth was slowed by a sluggish hospital supply business for the period. The decline of 1.6 percent in reported international professional sales was due, in large part, to the strength of the U.S. dollar relative to local currencies. Excluding the negative impact of currency translation, international professional sales grew in low double digits for the period.
 Consumer sales decreased 1.9 percent worldwide for the third period. Domestic consumer sales growth was slowed by a sluggish retail environment and increased competitive pressure from private label products. The decline in international consumer sales was due to negative currency translation. In local currencies, international sales increased in the middle single-digit range.
 Average shares of common stock outstanding for the third quarter and nine months of 1993 were 651.7 and 653.9 million, respectively, compared with 655.5 and 660.8 million for the same periods a year ago.
 Earlier in the quarter, the company announced plans to reduce future annual costs by more than $100 million after taxes through a voluntary early retirement program and other initiatives. As previously announced, the estimated cost of these actions is approximately $200 million pretax, and has been provided for in the previously disclosed reserve for FASB No. 112, "Employers' Accounting for Post- Employment Benefits," adopted by the company in 1992.
 Consolidated net earnings for the nine months of 1993 were $1.45 billion, or $2.22 per share, compared with net earnings of $1.32 billion, or $1.99 per share, before one-time charges for the same period a year ago, an increase of 10.2 percent and 11.6 percent, respectively.
 The company reported consolidated sales of $10.61 billion for its worldwide operations during the nine month period of 1993, an increase of 3.5 percent over worldwide sales of $10.25 billion for the same period a year ago. Excluding the negative impact of the U.S. dollar relative to foreign currencies, sales for the nine month period increased 7.8 percent.
 For the nine-month period, sales in the U.S. increased 6.0 percent, while reported sales elsewhere in the Western Hemisphere and in Africa, Asia and the Pacific increased 11 percent each. Reported sales in Europe for the same period declined 5 percent due to negative currency translation, which adversely impacted reported sales by low double digits.
 Domestic sales for the nine-month period of 1993 were $5.39 billion, an increase of 6.0 percent over 1992 sales of $5.08 billion for the same period. Sales by international subsidiaries were $5.22 billion for the nine-month period of 1993, compared with $5.17 billion for the same period a year ago, an increase of 1.0 percent. Excluding the negative impact of currency translation, international sales increased 9.6 percent.
 Johnson & Johnson, with approximately 83,000 employees, is the world's largest and most comprehensive manufacturer of health care products serving the consumer, pharmaceutical, diagnostics and professional markets. Johnson & Johnson has 168 operating companies in 53 countries around the world, selling products in more than 150 countries. Sales in 1992 were $13.8 billion; net income and return on average stockholders' equity were $1.6 billion and 28.5 percent, respectively, before the cumulative effect of accounting changes for post-retirement and post-employment benefits, and income taxes.
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Supplementary Sales Data
 (Unaudited; dollars in millions)
 Third Quarter
 Percent
 Increase
 1993 1992 (Decrease)
 Sales To Customers By
 Segment Of Business:
 Consumer
 Domestic $ 682 683 (.1)
 International 533 556 (4.1)
 Total 1,215 1,239 (1.9)
 Pharmaceutical
 Domestic 458 406 12.8
 International 653 687 (4.9)
 Total 1,111 1,093 1.6
 Professional
 Domestic 698 658 6.1
 International 482 490 (1.6)
 Total 1,180 1,148 2.8
 Domestic 1,838 1,747 5.2
 International 1,668 1,733 (3.8)
 Worldwide $3,506 3,480 .7
 Nine Months
 Percent
 1993 1992 Increase
 Sales To Customers By
 Segment Of Business:
 Consumer
 Domestic $ 1,992 1,983 .5
 International 1,684 1,653 1.9
 Total 3,676 3,636 1.1
 Pharmaceutical
 Domestic 1,315 1,184 11.1
 International 2,027 2,024 .1
 Total 3,342 3,208 4.2
 Professional
 Domestic 2,079 1,915 8.6
 International 1,510 1,491 1.3
 Total 3,589 3,406 5.4
 Domestic 5,386 5,082 6.0
 International 5,221 5,168 1.0
 Worldwide $10,607 10,250 3.5
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement Of Earnings
 (Unaudited; in millions except per share figures)
 Third Quarter
 1993
 Percent
 Amount to Sales
 Sales To Customers $3,506 100.0
 Cost of products sold 1,188 33.9
 Selling, marketing and
 administrative expenses 1,445 41.2
 Research expense 277 7.9
 Interest income (18) (.5)
 Interest expense, net of portion capitalized 29 .8
 Other expense (income) 3 .1
 Total 2,924 83.4
 Earnings before provision for
 taxes on income 58 ? 16.6
 Provision for taxes on income 128 3.7
 Net earnings $ 454 12.9
 Net earnings per share $ .70
 Average shares outstanding 651.7
 Effective tax rate (as a percent) 22.0
 THIRD QUARTER
 1992(A)
 Percent
 Percent Increase
 Amount to Sales (Decrease)
 Sales To Customers $3,480 100.0 .7
 Cost of products sold 1,198 34.4 (.8)
 Selling, marketing and
 administrative expenses 1,431 41.1 1.0
 Research expense 277 8.0 ---
 Interest income (15) (.4)
 Interest expense, net of portion
 capitalized 35 1.0
 Other expense (income) (14) (.4)
 Total 2,912 83.7 .4
 Earnings before provision for
 taxes on income 568 16.3 2.5
 Provision for taxes on income 154 4.4 (16.9)
 Net earnings $ 414 11.9 9.7
 Net earnings per share $ .63 11.1
 Average shares outstanding 655.5
 Effective tax rate (as a percent) 27.1
 (A) -- Quarterly results have been restated to include an incremental after-tax charge of $11 million attributable to the adoption of accounting changes for postretirement benefits, postemployment benefits, and income taxes.
 Nine Months
 1993
 Percent
 Amount to Sales
 Sales To Customers $10,607 100.0
 Cost of products sold 3,499 33.0
 Selling, marketing and
 administrative expenses 4,313 40.7
 Research expense 844 8.0
 Interest income (53) (.5)
 Interest expense, net of portion
 capitalized 93 .8
 Other income (41) (.4)
 Total 8,655 81.6
 Earnings before provision for
 taxes on income and cumulative
 effect of accounting changes 1,952 18.4
 Provision for taxes on income 500 4.7
 Earnings before cumulative effect
 of accounting changes 1,452 13.7
 Cumulative effect of accounting changes,
 net of taxes --- ---
 Net earnings $ 1,452 13.7
 Net earnings per share:
 Before cumulative effect of
 accounting changes $ 2.22
 Cumulative effect of accounting
 changes, net of taxes ---
 Net earnings per share $ 2.22
 Average shares outstanding 653.9
 Effective tax rate before cumulative
 effect of accounting changes
 (as a percent) 25.6
 1992(A)
 Percent
 Percent Increase
 Amount to Sales (Decrease)
 Sales To Customers $10,250 100.0 3.5
 Cost of products sold 3,444 33.6 1.6
 Selling, marketing and
 administrative expenses 4,175 40.7 3.3
 Research expense 807 7.9 4.6
 Interest income (69) (.7)
 Interest expense, net of portion
 capitalized 83 .8
 Other income (38) (.3)
 Total 8,402 82.0 3.0
 Earnings before provision for
 taxes on income and cumulative
 effect of accounting changes 1,848 18.0 5.6
 Provision for taxes on income 530 5.1 (5.7)
 Earnings before cumulative
 effect of accounting changes 1,318 12.9 10.2
 Cumulative effect of accounting
 changes, net of taxes (595) N.M.
 Net earnings $ 723 N.M.
 Net earnings per share:
 Before cumulative effect of
 accounting changes $ 1.99 11.6
 Cumulative effect of accounting
 changes, net of taxes (.90)
 Net earnings per share $ 1.09 N.M.
 Average shares outstanding 660.8
 Effective tax rate before
 cumulative effect of
 accounting changes
 (as a percent) 28.7
 (A) -- 1992 results have been restated to reflect a one-time after-tax charge of $595 million or $.90 a share, due to the company's early adoption of accounting changes for postretirement benefits, postemployment benefits, and income taxes. In addition, results have been restated to include an incremental after-tax charge of $35 million attributable to these accounting changes.
 N.M. -- Not meaningful
 -0- 10/20/93
 /CONTACT: F. Robert Kniffin, 908-524-3535, or (home) 609-799-0369, or (investors) Clarence E. Lockett, 908-524-6491 or (home) 215-493-0757, both of Johnson & Johnson/
 (JNJ)


CO: Johnson & Johnson ST: New Jersey IN: MTC HOU SU: ERN

TS -- NY015 -- 4373 10/20/93 08:32 EDT
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Date:Oct 20, 1993
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