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JOHNSON & JOHNSON ANNOUNCES RECORD YEAR-END RESULTS

 JOHNSON & JOHNSON ANNOUNCES RECORD YEAR-END RESULTS
 NEW BRUNSWICK, N.J., Jan. 30 /PRNewswire/ -- Johnson & Johnson


(NYSE: JNJ) today announced record sales of $12.45 billion and record net earnings of $4.39 per share in 1991. Consolidated net sales for the worldwide manufacturer of health care products increased 10.8 percent over 1990 sales of $11.23 billion. Consolidated net earnings and earnings per share increased 15.2 percent over the 1990 results, excluding nonrecurring Latin America charges taken in the first quarter of 1990. The strength of the dollar relative to international currencies during the year negatively impacted sales by 0.9 percent or $106 million.
 Consolidated net earnings for 1991 were $1.46 billion, compared to net earnings of $1.14 billion for 1990. Consolidated net earnings and earnings per share in 1990 were reduced by $125 million, or $0.38 per share, due to the first quarter nonrecurring charge for the permanent impairment of certain assets and operations in Latin America, primarily Argentina. Excluding these nonrecurring costs, net earnings for 1990 were $1.27 billion and earnings per share were $3.81.
 For the fourth quarter of 1991, the company reported that earnings per share rose 18.6 percent to $.83 from $.70 for the same period a year ago. Consolidated net earnings were $274 million compared to $232 million during the fourth quarter of 1990, an increase of 18.1 percent.
 Consolidated sales for the fourth quarter of 1991 were $3.15 billion, an increase of 12.7 percent over 1990 fourth quarter sales of $2.79 billion. The effect of a stronger U.S. dollar relative to international currencies decreased fourth quarter sales by 2.6 percent or $72 million. Excluding the effect of currency exchange rates, sales increased 15.3 percent for the quarter and 11.7 percent for the year. Selling in more than 150 countries, Johnson & Johnson generates approximately 50 percent of its revenues outside the United States.
 Ralph S. Larsen, chairman and chief executive officer, said, "Strong U.S. sales and increasing global penetration reinforced our position as the largest and most comprehensive health care company in the world with 1991 revenues of over $12.4 billion, a gain of 10.8 percent for the year. We are pleased to report earnings growth of 15.2 percent, despite significantly greater research and development spending, higher marketing and promotional costs due to new product launches and continuing economic difficulties in Brazil.
 "Highlights of the year's results include strong sales growth in the pharmaceutical segment, a solid performance in professional operations, and a significant expansion in over-the-counter (OTC) drugs, which accelerated revenue growth in our consumer segment," Larsen said.
 "During 1991, Johnson & Johnson invested nearly $1 billion in research and development activities, an increase of 17.5 percent over the prior year. This is a substantially higher increase than the rate we are growing our revenues," Larsen noted. "With an increasing focus on health care cost containment, we are committed to achieving significant advances in health care by pursuing innovative new products that save lives, decrease the need for surgery, enhance the quality of life and reduce health care costs. Our pharmaceutical pipeline is broad and deep, and we have many research alliances in several therapeutic categories."
 Larsen said the company has deployed both significant capital and research dollars in the emerging field of less-invasive surgery, which reduces patient discomfort, shortens hospital stays and decreases total costs to the health care system. During 1991, the company introduced 45 new products for endoscopic procedures involving gallbladders, hernia repairs, bowel resections, thoracic and gynecological surgery.
 Other U.S. product launches during the year included pharmaceuticals such as the anti-anemia drug Procrit; the antibiotic Floxin; Duragesic, a transdermal patch for severe pain; and many new medical devices including the PALMAZ Stent for use in clogged iliac arteries and the P.F.C. Hip System, which enables surgeons to customize implants for hip replacements. Surevue, a daily-wear, frequent replacement contact lens, was launched in 1991. It is based on the same patented technology as the company's highly successful disposable lens, Acuvue. In addition, the company continued to significantly expand its over-the-counter pharmaceutical business with the switch of Monistat 7 from prescription to OTC, while adding more products to its highly successful Tylenol line, including Tylenol PM and Tylenol Cough.
 "More than 25 percent of total worldwide 1991 sales were from products introduced in just the last five years, showing innovative research and our ability to rapidly move product around the world," Larsen said.
 During 1991, the company increased its annual dividend for the 27th consecutive year, from $1.36 to $1.60, up 18 percent.
 Pharmaceutical sales for the year were up 14.9 percent worldwide, reflecting continued market penetration of key pharmaceuticals and several significant new introductions in the United States. Johnson & Johnson's product line now includes more than 80 prescription drugs, with 60 percent of sales from this segment generated outside the United States. U.S. pharmaceutical sales advanced 16.4 percent, due to substantially higher sales at Ortho Biotech, Janssen USA, and McNeil Pharmaceutical. International sales, through Janssen Pharmaceutica, headquartered in Belgium, and Cilag International, based in Switzerland, increased 13.9 percent, despite the stronger dollar.
 Prescription drugs achieving significant sales gains during the year were Prepulsid, a gastrointestinal prokinetic sold outside the United States and currently pending FDA approval in the United States; Hismanal, the once-a-day less-sedating antihistamine; Eprex, the international anti-anemia drug launched in 1991 in the United States under the brand name Procrit; and Sporanox, an
international anti-fungal currently awaiting U.S. FDA approval. Twenty-one drugs sold by Johnson & Johnson had 1991 sales in excess of $50 million, with 12 of them in excess of $100 million. Pharmaceutical sales trends in the fourth quarter were similar to those experienced for the year.
 Sales in the professional segment rose 9.4 percent worldwide, with U.S. sales posting an 11.6 percent gain, and international sales improving 6.9 percent. Vistakon, Ethicon, LifeScan, Codman and Shurtleff, and Johnson & Johnson Orthopaedics led the segment with higher sales volume gains in the United States and abroad.
 "Sales of Acuvue disposable contact lenses were excellent, significantly outperforming the growth in the industry," Larsen said. "With worldwide sales increasing more than 45 percent during the year, Acuvue not only holds the leadership position in disposables, but continues to dominate the market for new prescriptions of extended-wear lenses. Acuvue, with sales in 36 countries, is now the number one selling contact lens in the world." Larsen noted that the company recently introduced Acuvue in Japan, second only to the United States in number of contact lens wearers.
 Ethicon maintained its strong market share in sutures besides introducing a significant number of new endoscopic products for less invasive surgery. Fourth quarter sales for Ethicon were outstanding due to new product launches and were a major factor in the segment's 18.8 percent improvement in U.S. revenue for the period. With the growing demand for minimally-invasive surgery, Ethicon will further broaden its product line of endoscopic instruments during 1992, while also bringing to market new internal stapling devices.
 Johnson & Johnson's professional business includes suture and mechanical wound closure products, diagnostic products, medical equipment and devices, ophthalmic products, surgical instruments and medical supplies.
 Johnson & Johnson's consumer business, which includes over-the- counter drugs, sanitary protection, health care, dental, and baby products, posted an 8.8 percent sales increase on a worldwide basis during 1991. U.S. sales for the consumer segment posted substantial gains, increasing 17.8 percent, led by higher sales for Advanced Care Products and McNeil Consumer Products Company. In addition, Mylanta sales posted strong improvement for the year, due to the introduction of two new flavors. Serenity, a unique incontinence product for women, significantly enhanced revenues during the year and now ranks as the No. 2 product in its category. International consumer sales were flat for the year, reflecting a substantial decline in the U.S. dollar value of sales from Brazilian operations, as had been expected, which offset sales improvements in Canada, Europe, Asia and Africa.
 Consolidated earnings before provision for taxes for 1991 were $2.04 billion, compared to $1.62 billion for the same period in 1990 which included the first quarter nonrecurring charge for Latin America, as noted previously. Excluding the charge, earnings before provision for taxes for 1991 increased 15.6 percent over the previous year.
 U.S. sales for 1991 were $6.25 billion, an increase of 15.1 percent over 1990 U.S. sales of $5.43 billion. Sales by international subsidiaries were $6.20 billion for 1991 compared with $5.80 billion for the same period a year ago, an increase of 6.8 percent. The effect of a stronger U.S. dollar relative to international currencies decreased international sales by 1.8 percent. Excluding the effect of currency exchange rates, international sales would have increased 8.6 percent.
 Average shares of common stock outstanding for 1991 were 333.1 million compared with 333.0 million in 1990.
 Johnson & Johnson, with over 82,000 employees, is the world's largest and most comprehensive manufacturer of health care products serving the consumer, pharmaceutical and professional markets.
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Supplementary Sales Data
 (Unaudited; dollars in millions)
 Fourth Quarter
 1991 1990 Pct. Inc.
 Sales to customers by
 segment of business
 Consumer:
 Domestic $ 566 $ 474 19.4
 International 527 494 6.7
 Total 1,093 968 12.9
 Pharmaceutical:
 Domestic 383 330 16.1
 International 590 537 9.9
 Total 973 867 12.2
 Professional:
 Domestic 613 516 18.8
 International 469 443 5.9
 Total 1,082 959 12.8
 Domestic 1,562 1,320 18.3
 International 1,586 1,474 7.6
 Worldwide $3,148 $2,794 12.7
 Year
 1991 1990 Pct. Inc.
 Sales to customers by
 segment of business
 Consumer:
 Domestic $ 2,460 $ 2,089 17.8
 International 2,124 2,123 --
 Total 4,584 4,212 8.8
 Pharmaceutical:
 Domestic 1,532 1,316 16.4
 International 2,263 1,987 13.9
 Total 3,795 3,303 14.9
 Professional:
 Domestic 2,256 2,022 11.6
 International 1,812 1,695 6.9
 Total 4,068 3,717 9.4
 Domestic 6,248 5,427 15.1
 International 6,199 5,805 6.8
 Worldwide $12,447 $11,232 10.8
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in millions except per share figures)
 Fourth Quarter
 1991
 Percent
 Amount to Sales
 Sales to customers $3,148 100.0
 Cost of products sold 1,102 35.0
 Selling, distribution &
 administrative expenses 1,342 42.6
 Research expense 294 9.3
 Interest income (25) (.8)
 Interest expense, net of portion
 capitalized 25 .8
 Other expense (income), net 81 2.6
 Total 2,819 89.5
 Earnings before provision for
 taxes on income 329 10.5
 Provision for taxes on income 55 1.8
 Net earnings $ 274 8.7
 Net earnings per share $.83
 Average shares outstanding 333.1
 Effective tax rate 16.7 pct
 Fourth Quarter
 1990
 Percent Percent
 Amount to Sales Increase
 Sales to customers $2,794 100.0 12.7
 Cost of products sold 1,051 37.6 4.9
 Selling, distribution &
 administrative expenses 1,161 41.6 15.6
 Research expense 256 9.2 14.8
 Interest income (27) (1.0)
 Interest expense, net of portion
 capitalized 33 1.2
 Other expense (income), net 34 1.2
 Total 2,508 89.8 12.4
 Earnings before provision for
 taxes on income 286 10.2 15.0
 Provision for taxes on income 54 1.9 1.9
 Net earnings $ 232 8.3 18.1
 Net earnings per share $.70 18.6
 Average shares outstanding 333.0
 Effective tax rate 18.9 pct
 Year
 1991
 Percent
 Amount to Sales
 Sales to customers $12,447 100.0
 Cost of products sold 4,204 33.8
 Selling, distribution &
 administrative expenses 5,099 41.0
 Research expense 980 7.9
 Permanent impairment of certain assets
 and operations in Latin America -- --
 Interest income (88) (.7)
 Interest expense, net of portion
 capitalized:
 Liquidation of Argentine debt -- --
 Other interest expense 129 1.0
 Other expense (income), net 85 .6
 Total 10,409 83.6
 Earnings before provision for
 taxes on income 2,038 16.4
 Provision for taxes on income 577 4.7
 Net earnings $ 1,461 11.7
 Net earnings per share $4.39
 Average shares outstanding 333.1
 Ex-nonrecurring charge (A):
 Earnings before taxes $ 2,038 16.4
 Net earnings $ 1,461 11.7
 Earnings per share $4.39
 Effective tax rate 28.3 pct
 Effective tax rate
 (ex-nonrecurring charge) 28.3 pct
 Year
 1990
 Percent Percent
 Amount to Sales Increase
 Sales to customers $11,232 100.0 10.8
 Cost of products sold 3,937 35.1 6.8
 Selling, distribution &
 administrative expenses 4,469 39.8 14.1
 Research expense 834 7.4 17.5
 Permanent impairment of certain
 assets and operations in Latin
 America 104 .9
 Interest income (98) (.8)
 Interest expense, net of portion
 capitalized:
 Liquidation of Argentine debt 36 .3
 Other interest expense 165 1.5
 Other expense (income), net 162 1.4
 Total 9,609 85.6 8.3
 Earnings before provision for
 taxes on income 1,623 14.4 25.6
 Provision for taxes on income 480 4.2 20.2
 Net earnings $ 1,143 10.2 27.8
 Net earnings per share $3.43 28.0
 Average shares outstanding 333.0 -
 Ex-nonrecurring charge (A):
 Earnings before taxes $ 1,763 15.7 15.6
 Net earnings $ 1,268 11.3 15.2
 Earnings per share $3.81 15.2
 Effective tax rate 29.6 pct
 Effective tax rate
 (ex-nonrecurring charge) 28.1 pct
 (A) -- Consolidated net earnings and earnings per share for 1990 were reduced by $140 million pretax or $125 million after tax ($.38 per share) due to the first quarter nonrecurring charge for the permanent impairment of certain assets and operations in Latin America, primarily Argentina.
 -0- 1/30/92
 /CONTACT: F. Robert Kniffin (press), 908-524-3535, or home, 609-799-0369; or Clarence E. Lockett (investors), 908-524-6491, or home, 215-493-0757, both of Johnson & Johnson/
 (JNJ) CO: Johnson & Johnson ST: New Jersey IN: HEA SU: ERN


GK -- NY015 -- 5083 01/30/92 09:02 EST
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