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JOHNSON & JOHNSON FIRST QUARTER EPS UP 13.2 PERCENT; SALES INCREASE 6.0 PERCENT

 NEW BRUNSWICK, N.J., April 29 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced consolidated sales of $3.56 billion for the first quarter of 1993, an increase of 6.0 percent over 1992 first quarter sales of $3.36 billion. The effect of the stronger dollar relative to foreign currencies decreased first quarter's sales by 3.2 percent.
 Consolidated net earnings were $503 million, compared with $452 million for the same period in 1992, an increase of 11.3 percent, before the 1992 cumulative effect of accounting changes for postemployment benefits and income taxes. Earnings per share for the period were $.77, compared with $.68 prior to the cumulative effect of the accounting changes, for the same period a year ago, an increase of 13.2 percent.
 Ralph S. Larsen, chairman and chief executive officer, stated: "Excluding the negative effect of currency, sales grew 9.2 percent on an operational basis for the first quarter of 1993, compared with 8.7 percent for the same period a year ago. Our sales growth for the period was adversely impacted by the strength of the U.S. dollar relative to foreign currencies as well as adjustments being made in health care systems in several international markets."
 "We are pleased with the solid performance of our domestic pharmaceutical and professional businesses, both with revenue growth of about 11 percent," Mr. Larsen stated.
 The increase in revenue can be attributed to products recently introduced such as ORTHO-CEPT, an oral contraceptive; SPORANOX, an antifungal; and LEUSTATIN, a drug that treats hairy cell leukemia, which was approved by the Food and Drug Administration (FDA) in the first quarter. In addition, several products introduced over the last two years continued to show strong growth: DURAGESIC, a transdermal patch for severe pain; NIZORAL Shampoo, currently the number one prescription anti-dandruff shampoo; PROCRIT, an anti-anemia drug, which recently received FDA approval for use with anemia related to cancer chemotherapy; ONE TOUCH II Blood Glucose Monitoring System; ACUVUE Disposable Contact Lens; and exceptional growth in disposable instruments used in less-invasive surgery.
 "Johnson & Johnson is committed to investing for the future, and we expect our investment in research and development to be approximately $1.3 billion in 1993. The benefits of past investments in R&D are reflected in a broad and deep pharmaceutical pipeline and in the fact that almost 35 percent of 1992's revenue was generated from products introduced within the past five years," said Mr. Larsen.
 Worldwide pharmaceutical sales for the quarter increased 7.9 percent, with domestic pharmaceutical sales growing 11.1 percent. Leading the way for the domestic pharmaceutical sales gain were ORTHO- CEPT, DURAGESIC, SPORANOX, PROCRIT, NIZORAL Shampoo, OKT-3, an organ transplant rejection drug, and LEUSTATIN. These sales gains were partially offset by lower sales of HISMANAL, the once-a-day, less- sedating antihistamine, due to more restrictive labeling, and TOLECTIN, a nonsteroidal anti-inflammatory, which went off patent in 1992.
 International pharmaceutical sales were up 5.9 percent. Excluding the negative effect of currency, sales were up in the low double digits for the quarter. Despite this adverse factor, strong sales performances were recorded by PREPULSID, a gastrointestinal product, SPORANOX, and EPREX, an anti-anemia drug.
 Johnson & Johnson's worldwide consumer sales were up 3.7 percent for the quarter, versus the same period a year ago. International sales increased 8.1 percent while domestic sales were flat. The increase in international consumer sales can be attributed to the strong performance of our businesses in the Middle and Far East, plus improved performance from many of our Latin American businesses. Domestic consumer sales remained at last year's level due to a modest downturn in our over-the- counter (OTC) drug business, which was impacted by a weak cold and flu season, competitive new products and retail inventory reductions but was rebounding as the quarter progressed. The quarter also yielded a strong performance in the feminine hygiene business, where Personal Products Company introduced several new sanitary napkin products, STAYFREE Maxi Liner, STAYFREE Ultra Thin Maxi, and CAREFREE Longs.
 Sales for the professional segment increased 7.0 percent. Domestic sales increased 10.9 percent, led by strong growth of the Ethicon endo- surgery instruments business, continued solid growth from ACUVUE Disposable Contact Lens, the orthopaedics business with hip and knee replacement products, and LifeScan's ONE TOUCH II Blood Glucose Monitor. International sales increased 2.2 percent and were adversely impacted by currency translation, although ACUVUE, ONE TOUCH II, and the endo- surgery business showed strong growth, in local currency terms, during the quarter.
 Johnson & Johnson derives approximately 50 percent of its sales from outside the United States.
 Average shares of common stock outstanding in the first three months of 1993 were 655.4 million, compared with 666.0 million for the same period a year ago.
 Johnson & Johnson, with over 84,000 employees, is the world's largest and most comprehensive manufacturer of health care products serving the consumer, pharmaceutical, and professional markets. Johnson & Johnson has 168 operating companies in 53 countries around the world, selling products in more than 150 countries. 1992 sales were $13.8 billion; net income and the return on average stockholder's equity were $1.6 billion and 28.5 percent , respectively, before the cumulative effect of accounting changes.
 JOHNSON & JOHNSON AND SUBSIDIARIES
 SUPPLEMENTARY SALES DATA
 (Unaudited; Dollars in Millions)
 FIRST QUARTER
 Percent
 1993 1992 Increase
 Sales to customers by
 segment of business
 Consumer
 Domestic $702 700 .3
 International 575 532 8.1
 Total $1,277 1,232 3.7
 Pharmaceutical
 Domestic $429 386 11.1
 International 683 645 5.9
 Total $1,112 1,031 7.9
 Professional
 Domestic $669 603 10.9
 International 502 491 2.2
 Total $1,171 1,094 7.0
 Domestic $1,800 1,689 6.6
 International 1,760 1,668 5.5
 WORLDWIDE $3,560 3,357 6.0
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in Millions Except Per Share Figures)
 FIRST QUARTER
 1993
 Percent
 Amount to Sales
 Sales to customers $3,560 100.0
 Cost of products sold 1,163 32.7
 Selling, marketing and
 administrative expenses 1,436 40.3
 Research expense 281 7.9
 Interest income (20) (.6)
 Interest expense, net of portion
 capitalized 31 .9
 Other expense (31) .9
 Total 2,860 80.3
 Earnings before provision for
 taxes on income and cumulative
 effect of changes in accounting
 principles 700 19.7
 Provision for taxes on income 197 5.6
 Earnings before cumulative effect
 of accounting changes 503 14.1
 Cumulative effect of accounting changes,
 net of taxes -- --
 Net earnings/(loss) $503 14.1
 Net earnings/(loss) per share:
 Before cumulative effect of
 accounting changes $.77
 Cumulative effect of accounting
 changes, net of taxes -
 Net earnings/(loss) per share $.77
 Average shares outstanding 655.4
 Effective tax rate before cumulative
 effect of accounting changes 28.1 percent
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in Millions Except Per Share Figures)
 FIRST QUARTER
 1992
 Percent Percent
 Amount(A) to Sales Increase
 SALES TO CUSTOMERS $3,357 100.0 6.0
 Cost of products sold 1,127 33.6 3.2
 Selling, marketing and
 administrative expenses 1,355 40.4 6.0
 Research expense 262 7.8 7.3
 Interest income (20) (.6)
 Interest expense, net of portion
 capitalized 21 .6
 Other expense (32) (1.0)
 Total 2,713 80.8 5.4
 Earnings before provision for
 taxes on income and cumulative
 effect of changes in accounting
 principles 644 19.2 8.7
 Provision for taxes on income 192 5.7 2.6
 Earnings before cumulative
 effect of accounting changes 452 13.5 11.3
 Cumulative effect of accounting
 changes, net of taxes (595) N.M.
 Net earnings/(loss) $(143) N.M.
 Net earnings/(loss) per share:
 Before cumulative effect of
 accounting changes $.68 13.2
 Cumulative effect of accounting
 changes, net of taxes (.90)
 Net earnings/(loss) per share $(.22)
 Average shares outstanding 666.0
 Effective tax rate before
 cumulative effect of
 accounting changes 29.8
 (A) -- 1992 first quarter 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 Statements of Financial Accounting Standards No. 106, No. 109 and No. 112.
 N.M. -- Not meaningful
 -0- 4/29/93
 /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 SU: ERN

TS -- NY016 -- 2430 04/29/93 08:07 EDT
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Date:Apr 29, 1993
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