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JOHNSON & JOHNSON ANNOUNCES RECORD YEAR-END RESULTS; 1992 EPS ROSE 15.5 PERCENT ON SALES INCREASE OF 10.5 PERCENT

 NEW BRUNSWICK, N.J., Feb. 2 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced record sales of $13.75 billion and record net earnings of $2.53 per share in 1992, excluding the previously disclosed negative impact of the early adoption of Statement of Financial Accounting Standards (FAS) No. 106, "Accounting for Post Retirement Benefits Other Than Pensions," FAS No. 112, "Accounting for Post Employment Benefits," and FAS No. 109, "Accounting for Income Taxes." Including the one-time charge and incremental annual costs related to the early adoption of these accounting standards, net earnings were $1.56 per share.
 Consolidated net sales for the worldwide manufacturer of health care products increased 10.5 percent over 1991 sales of $12.45 billion. The effect of the dollar relative to international currencies during the year positively impacted sales by .5 percent or $64 million. Consolidated net earnings for 1992 were $1.03 billion, compared to net earnings of $1.46 billion for 1991. Consolidated 1992 net earnings were reduced by the one-time charge for cumulative accounting changes of $595 million retroactive to the first quarter of 1992 and incremental annual costs related to these accounting changes of $44 million.
 For the fourth quarter of 1992, the Company reported that earnings per share rose 14.6 percent to $.47 from $.41 for the same period a year ago. On a comparable basis, excluding the incremental costs associated with the accounting changes, earnings per share rose 17.1 percent to $.48. Consolidated net earnings were $307 million compared to $274 million during the fourth quarter of 1991, an increase of 12.0 percent, and fourth quarter's earnings were reduced by $9 million, or $.01 per share, due to the incremental effect of early adoption of the previously mentioned new accounting standards.
 Consolidated sales for the fourth quarter were $3.50 billion, an increase of 11.3 percent over the 1991 fourth quarter sales of $3.15 billion. The effect of a stronger U.S. dollar relative to international currencies decreased fourth quarter sales by 1.3 percent or $41 million. Excluding the effect of currency exchange rates, sales increased 12.6 percent for the quarter and 10.0 percent for the year. Domestic sales for the fourth quarter were particularly strong, gaining 16.6 percent with increases of 18.8 percent and 22.2 percent in the Professional and the Pharmaceutical business segments, respectively.
 "We are pleased with our performance in 1992," said Mr. Ralph S. Larsen, chairman of the board and chief executive officer. "Our sales growth reinforces our position as the world's largest and most comprehensive health care company with revenues of over $13.7 billion, a gain of 10.5 percent. Over two-thirds of the sales gain represents strong unit volume growth. Earnings per share, before the impact of the accounting changes, increased 15.5 percent, despite our significant investment in research and development, our investment in emerging businesses, and the weak economic conditions throughout most of the world."
 "For the year, both the Pharmaceutical and Professional segments posted strong sales growth and the domestic Consumer business recorded a solid performance. The advance in Pharmaceutical sales was led by EPREX and PROCRIT, anti-anemia drugs; SPORANOX, an antifungal; PREPULSID, a gastrointestinal drug; and FLOXIN, an antibiotic. The rise in Professional sales came from the continued expansion of the ACUVUE disposable contact lens business, rapid growth and worldwide expansion of the endo-surgery business, and an accelerating Diagnostics business with ONE TOUCH II Blood Glucose Monitoring System and the improved hepatitis C test leading the way. During 1992, the Company invested more than $1.1 billion in research and development, emphasizing our commitment to achieving significant advances in health care through the discovery and development of innovative products that save lives, enhance the quality of life, and are cost effective."
 The pipeline for new products is quite healthy, noted Mr. Larsen, and several new products were introduced in the U.S. during 1992: SPORANOX, an antifungal; ORTHO-CYCLEN, an oral contraceptive; TYLENOL Headache Plus; SHOWER-TO-SHOWER Anti-Perspirant Deodorant; MONOCRYL, a monofilament synthetic absorbable suture; a series of endo-surgery products; the intravenous formulation of FLOXIN; and MYLANTA, the leading antacid, in gelcap form. In December, the Food and Drug Administration approved ORTHO-CEPT, an oral contraceptive containing the progestin, desogestrel, which was launched in early January 1993.
 "In 1992, more than 30 percent of total worldwide sales were from products introduced in the past five years, reflecting innovative research and our ability to rapidly introduce products to new markets around the world," Mr. Larsen said. Selling in more than 150 countries, Johnson & Johnson generates approximately 50 percent of its revenues outside the United States.
 The Company, in 1992, increased its annual dividend for the 28th consecutive year, from $.80 to $.92, an increase of 15 percent.
 Johnson & Johnson's Pharmaceutical sales for the year grew 14.4 percent over 1991. This growth reflects the continued market penetration of drugs introduced in the last three years, such as PREPULSID, EPREX and PROCRIT, FLOXIN, SPORANOX, DURAGESIC, a transdermal patch for severe pain, and ORTHO-CYCLEN. Johnson & Johnson markets more than 80 prescription drugs around the world, with slightly more than 60 percent of the sales generated outside the United States. Domestic Pharmaceutical sales increased 7.8 percent, due to higher sales of PROCRIT, DURAGESIC and FLOXIN. In the fourth quarter, domestic Pharmaceutical sales increased 22.2 percent due to the introduction of SPORANOX and ORTHO-CYCLEN. International sales, led by strong performances of EPREX, PREPULSID and SPORANOX, grew 18.8 percent for the year.
 Sales in the Professional segment increased 13.9 percent worldwide for the year. Domestic sales grew 17.2 percent and international sales grew 9.8 percent. The gain in U.S. sales can be attributed to the continued growth of ACUVUE, endo-surgery products, ONE TOUCH II Blood Glucose Monitoring System, and the improved hepatitis C test.
 Johnson & Johnson's Professional business includes suture and mechanical wound closure products, less-invasive surgical instruments, diagnostics products, medical equipment and devices, ophthalmic products, surgical instruments, joint replacements, and medical supplies.
 The Consumer segment consisting of over-the-counter drugs, sanitary protection products, adult incontinence products, healthcare, dental and baby products posted a sales increase of 4.3 percent for the year. Domestic sales increased 6.0 percent and were led by higher sales of MONISTAT 7, an over-the-counter remedy for vaginal yeast infections, MYLANTA, SERENITY, a unique incontinence product for women; the TYLENOL family of products; JOHNSON'S Bathtime Buddies baby toiletries; and adult toiletries, including the new SHOWER-TO-SHOWER Anti-Perspirant Deodorant. International sales increased 2.3 percent and were adversely impacted by sluggish international economies.
 Excluding the one-time charges associated with the adoption of the accounting changes, earnings before provision for taxes were $2.28 billion for 1992, an increase of 11.8 percent over the previous year.
 Domestic sales for 1992 were $6.90 billion, an increase of 10.5 percent over 1991 domestic sales of $6.25 billion. Sales by international subsidiaries were $6.85 billion for 1992 compared with $6.20 billion for the same period a year ago, an increase of 10.5 percent. The effect of the U.S. dollar relative to international currencies increased international sales by 1.0 percent. Excluding the effect of currency exchange rates, international sales would have increased 9.5 percent.
 During the second quarter of 1992, the Company completed a $500 million share repurchase program. Average shares of common stock outstanding for 1992 were 659.5 million compared with 666.1 million in 1991.
 Johnson & Johnson, with over 84,000 employees, is the world's largest and most comprehensive manufacturer of health care products serving the consumer, pharmaceutical, diagnostics, and professional markets.
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Supplementary Sales Data
 (Unaudited; Dollars in Millions)
 Fourth Quarter
 Percent
 Increase
 1992 1991 (Decrease)
 SALES TO CUSTOMERS BY
 SEGMENT OF BUSINESS
 Consumer
 Domestic $625 566 10.4
 International 519 527 (1.5)
 Total $1,144 1,093 4.7
 Pharmaceutical
 Domestic $468 383 22.2
 International 664 590 12.5
 Total $1,132 973 16.3
 Professional
 Domestic $728 613 18.8
 International 499 469 6.4
 Total $1,227 1,082 13.4
 Domestic $1,821 1,562 16.6
 International 1,682 1,586 6.1
 WORLDWIDE $3,503 3,148 11.3
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Supplementary Sales Data
 (Unaudited; Dollars in Millions)
 Year
 Percent
 1992 1991 Increase
 SALES TO CUSTOMERS BY
 SEGMENT OF BUSINESS
 Consumer
 Domestic $2,608 2,460 6.0
 International 2,172 2,124 2.3
 Total $4,780 4,584 4.3
 Pharmaceutical
 Domestic $1,652 1,532 7.8
 International 2,688 2,263 18.8
 Total $4,340 3,795 14.4
 Professional
 Domestic $2,643 2,256 17.2
 International 1,990 1,812 9.8
 Total $4,633 4,068 13.9
 Domestic $6,903 6,248 10.5
 International 6,850 6,199 10.5
 WORLDWIDE $13,753 12,447 10.5
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in millions except per share figures)
 Fourth Quarter
 1992
 Percent
 Amount to Sales
 SALES TO CUSTOMERS $3,503 100.0
 Cost of products sold 1,234 35.2
 Selling, marketing and
 administrative expenses 1,496 42.7
 Research expense 320 9.1
 Interest income (24) (.6)
 Interest expense, net of portion
 capitalized 41 1.2
 Other expense 77 2.2
 Total 3,144 89.8
 Earnings before provision for
 taxes on income 359 10.2
 Provision for taxes on income 52 1.4
 Net earnings $307 8.8
 Net earnings per share $.47
 Average shares outstanding 655.2
 Effective tax rate (as a percent) 14.5
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in millions except per share figures)
 Fourth Quarter
 1991
 Percent
 Percent Increase
 Amount to Sales (Decrease)
 SALES TO CUSTOMERS $3,148 100.0 11.3
 Cost of products sold 1,102 35.0 12.0
 Selling, marketing and
 administrative expenses 1,342 42.6 11.5
 Research expense 294 9.3 8.8
 Interest income (25) (.8)
 Interest expense, net of portion
 capitalized 25 .8
 Other expense 81 2.6
 2,819 89.5 11.5
 Earnings before provision for
 taxes on income 329 10.5 9.1
 Provision for taxes on income 55 1.8 (5.5)
 Net earnings $274 8.7 12.0
 Net earnings per share $.41 14.6
 Average shares outstanding 666.0
 Effective tax rate 16.7
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in Millions Except Per Share Figures)
 Fourth Quarter
 1992 Excluding Accounting Changes
 Percent Percent
 Amount to Sales Increase
 Sales to customers $3,503 100.0 11.3
 Cost of products sold 1,227 35.0 11.3
 Selling, marketing and
 administrative expenses 1,491 42.5 11.1
 Research expense 318 9.1 8.2
 Interest income (24) (.6)
 Interest expense, net of portion
 capitalized 41 1.2
 Other expense 77 2.2
 Total 3,130 89.4 11.0
 Earnings before provision for
 taxes on income 373 10.6 13.4
 Provision for taxes on income 57 1.6 3.6
 Net earnings $316 9.0 15.3
 Net earnings per share $.48 17.1
 Average shares outstanding 655.2
 Effective tax rate 15.3
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in millions except per share figures)
 Year
 1992
 Percent
 Amount to Sales
 Sales to customers $13,753 100.0
 Cost of products sold 4,678 34.0
 Selling, marketing and
 administrative expenses 5,671 41.2
 Research expense 1,127 8.2
 Interest income (93) (.6)
 Interest expense, net of portion
 capitalized 124 .9
 Other expense 39 .3
 Total 11,546 84.0
 Earnings before provision for
 taxes on income and cumulative
 effect of changes in accounting
 principles 2,207 16.0
 Provision for taxes on income 582 4.2
 Earnings before cumulative effect
 of changes in accounting principles 1,625 11.8
 Cumulative effect to December 30, 1991,
 of changes in accounting principles (A) (595) (4.3)
 Net earnings $1,030 7.5
 Net earnings per share:
 Before cumulative effect of change
 in accounting principles $2.46
 Cumulative effect to December 30, 1991,
 of changes in accounting principles (A) (.90)
 Net earnings per share $1.56
 Average shares outstanding 659.5
 Effective tax rate (As a percent):
 Before cumulative effect of changes
 in accounting principles 26.4
 After cumulative effect of changes
 in accounting principles (A) 21.7
 (A) -- Consolidated net earnings and earnings per share for 1992 were reduced by $892 million pretax and $595 million after tax ($. 90 per share) due to the Company's decision to adopt early three new accounting standards (Statement of Financial Accounting Standards No. 106, 109 and 112).
 JOHNSON & JOHNSON AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
 (Unaudited; in Millions Except Per Share Figures)
 YEAR
 1991
 Percent
 Percent Increase
 Amount to Sales (Decrease)
 SALES TO CUSTOMERS $12,447 100.0 10.5
 Cost of products sold 4,204 33.8 11.3
 Selling, marketing and
 administrative expenses 5,099 41.0 11.2
 Research expense 980 7.9 15.0
 Interest income (88) (.7)
 Interest expense, net of portion
 capitalized 129 1.0
 Other expense 85 .6
 Total 10,409 83.6 10.9
 Earnings before provision for
 taxes on income and cumulative
 effect of changes in accounting
 principles 2,038 16.4 8.3
 Provision for taxes on income 577 4.7 .9
 Earnings before cumulative
 effect of changes in accounting
 principles 1,461 11.7 11.2
 Cumulative effect to December 30,
 1991, of changes in accounting
 principles (A) -- -- --
 Net earnings $1,461 11.7 (29.5)
 Net earnings per share:
 Before cumulative effect
 of change in accounting
 principles $2.19 12.3
 Cumulative effect to
 December 30, 1991, of changes
 in accounting principles (A) --
 Net earnings per share $2.19 (28.8)
 Average shares outstanding 666.1
 Effective tax rate (as a percent):
 Before cumulative effect of
 changes in accounting
 principles 28.3
 After cumulative effect of
 changes in accounting
 principles (A)
 (A) -- Consolidated net earnings and earnings per share for 1992 were reduced by $892 million pretax and $595 million after tax ($.90 per share) due to the Company's decision to adopt early three new accounting standards (Statement of Financial Accounting Standards No. 106, 109 and 112).
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in Millions Except Per Share Figures)
 Year
 1992 Excluding Accounting Changes
 Percent Percent
 Amount to Sales Increase
 SALES TO CUSTOMERS $13,753 100.0 10.5
 Cost of products sold 4,639 33.7 10.3
 Selling, marketing and
 administrative expenses 5,647 41.0 10.7
 Research expense 1,119 8.1 14.2
 Interest income (93) (.6)
 Interest expense, net of portion
 capitalized 124 .9
 Other expense 39 .3
 Total 11,475 83.4 10.2
 Earnings before provision for
 taxes on income and cumulative
 effect of changes in accounting
 principles 2,278 16.6 11.8
 Provision for taxes on income 609 4.5 5.5
 Earnings before cumulative
 effect of changes in accounting
 principles 1,669 12.1 14.2
 Cumulative effect to December 30,
 1991, of changes in accounting
 principles (A) -- -- --
 Net earnings $1,669 12.1 14.2
 Net earnings per share:
 Before cumulative effect
 of change in accounting
 principles $2.53 15.5
 Cumulative effect to
 December 30, 1991, of changes
 in accounting principles (A) -
 Net earnings per share $2.53 15.5
 Average shares outstanding 659.5
 Effective tax rate:
 Before cumulative effect of
 changes in accounting
 principles 26.7
 After cumulative effect of
 changes in accounting
 principles (A)
 (A) -- Consolidated net earnings and earnings per share for 1992 were reduced by $892 million pretax and $595 million after tax ($.90 per share) due to the Company's decision to adopt early three new accounting standards (Statement of Financial Accounting Standards No. 106, 109 and 112).
 -0- 2/2/93
 /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: HEA SU: ERN

TS -- NY008 -- 1679 02/02/93 08:59 EST
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