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JOHNSON & JOHNSON THIRD QUARTER EARNINGS PER SHARE UP 20.4 PERCENT; SALES INCREASE 11.6 PERCENT

JOHNSON & JOHNSON THIRD QUARTER EARNINGS PER SHARE UP 20.4 PERCENT;
 SALES INCREASE 11.6 PERCENT
 NEW BRUNSWICK, N.J., Oct. 20 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced consolidated sales of $3.48 billion for the third quarter of 1992, an increase of 11.6 percent over 1991 third quarter sales of $3.12 billion. The effect of the weaker dollar relative to foreign currencies increased third quarter sales by 3.8 percent.
 Consolidated net earnings were $425 million, compared with $363 million for the same period in 1991, an increase of 17.1 percent. Earnings before taxes increased 12.3 percent for the third quarter. Earnings per share for the period were $.65, compared with $.54 per share for the same period a year ago, an increase of 20.4 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. During the second quarter of 1992, the Company completed a $500 million share repurchase program.
 As previously announced, included in the third quarter results was the recognition of a damage award to Minnesota Mining & Manufacturing Company (3M) in the amount of $116 million, plus interest. Also reflected in the third quarter results was the net result of adjudicated awards with Amgen, resulting in a net amount of approximately $74 million in favor of Johnson & Johnson. The net result of these adjudications and reserves had no material effect on the quarter's earnings.
 Ralph S. Larsen, chairman and chief executive officer, stated: "Overall performance was solid in both sales and earnings for the third quarter despite weakness in all major economies around the world. Our investment in research and development to fuel future growth continues to outpace the percentage increase in revenues. For 1992, Johnson & Johnson expects to invest more than $1.1 billion in research and development.
 "Of particular note were the strong sales performances of our international pharmaceutical business, which increased revenues 25.6 percent and the domestic and international professional businesses, which increased revenues 19.0 percent and 14.0 percent, respectively," Mr. Larsen continued.
 Pharmaceutical sales increased 15.9 percent worldwide. International pharmaceutical sales rose 25.6 percent for the quarter, led by significant increases in PREPULSID, a gastrointestinal product, EPREX, an anti-anemia drug, SPORANOX, the company's latest broad spectrum antifungal for superficial and systemic infections, and NIZORAL Shampoo, an antifungal application. Domestic pharmaceutical sales increased 2.5 percent for the period, led by sales increases in FLOXIN, an antibacterial drug sold in both tablet and intravenous formulations, and DURAGESIC, the transdermal patch for chronic cancer pain. These domestic sales gains were partially offset by sales decline in HISMANAL, the only once-a-day less sedating antihistamine, and reduced sales of oral contraceptives versus the same period a year ago. During the quarter, the FDA approved the antifungal SPORANOX for use in the U.S.
 Professional sales increased 16.8 percent worldwide. Strong growth of the ACUVUE Disposable Contact Lens business, continued market growth of the ONE TOUCH II Blood Glucose Monitoring System, exceptional growth of the less-invasive surgery business, and increased sales of the improved hepatitis C test contributed to the domestic professional sales growth of 19.0 percent. Significant sales performances in the diagnostics, disposable contact lens, wound closure, and less-invasive surgery markets accounted for the 14.0 percent sales growth in the international professional business.
 Consumer sales increased 3.9 percent worldwide for the period. Domestic consumer sales growth was slowed by the sluggish retail environment, but posted a 3.3 percent increase due to the strong sales growth of MYLANTA, an antacid, that became available in a gelcap form during the period, and continued growth of SERENITY, the female incontinence product. International consumer sales increased 4.5 percent.
 Average shares of common stock outstanding for the third quarter and nine months of 1992 were 655.5 and 660.8 million, respectively, compared with 666.2 million for the same periods a year ago.
 Consolidated net earnings for the nine months of 1992 were $1.35 billion, or $2.05 per share, compared with net earnings of $1.19 billion, or $1.78 per share, for the same period a year ago, an increase of 14.0 percent and 15.2 percent, respectively.
 The company reported consolidated sales of $10.25 billion for its worldwide operations during the nine-month period of 1992, an increase of 10.2 percent over worldwide sales of $9.30 billion for the same period a year ago. The weakness of the U.S. dollar relative to foreign currencies had a positive effect of 1.1 percent on sales revenue for the nine months of 1992.
 Domestic sales for the nine months of 1992 were $5.1 billion, an increase of 8.5 percent over 1991 sales of $4.7 billion for the same period. Unit volume growth represents more than two-thirds of this revenue growth. Sales by international subsidiaries were $5.2 billion for the nine-month period of 1992, compared with $4.6 billion for the same period a year ago, an increase of 12.0 percent. Excluding the positive impact of currency translation, international sales increased 9.7 percent.
 Johnson & Johnson, with over 82,000 employees, is the world's largest and most comprehensive manufacturer of health care products serving the consumer, pharmaceutical, diagnostic, and professional markets. Johnson & Johnson has 166 operating companies in 52 countries around the world, selling products in more than 150 countries. Sales in 1991 were $12.45 billion; net income exceeded $1.4 billion; and the return on average stockholders' equity was 27.8 percent.
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Supplementary Sales Data
 (Unaudited; Dollars in Millions)
 Third quarter 1992 1991 Pct. incr.
 Sales to customers by
 segment of business
 Consumer
 Domestic $683 661 3.3
 International 556 532 4.5
 Total $1,239 1,193 3.9
 Pharmaceutical
 Domestic $406 396 2.5
 International 687 547 25.6
 Total $1,093 943 15.9
 Professional
 Domestic $658 553 19.0
 International 490 430 14.0
 Total $1,148 983 16.8
 Domestic $1,747 1,610 8.5
 International 1,733 1,509 14.8
 Worldwide $3,480 3,119 11.6
 Nine months 1992 1991 Pct. incr.
 Sales to customers by
 segment of business
 Consumer
 Domestic $1,983 1,894 4.7
 International 1,653 1,597 3.5
 Total $3,636 3,491 4.2
 Pharmaceutical
 Domestic $1,184 1,149 3.0
 International 2,024 1,673 21.0
 Total $3,208 2,822 13.7
 Professional
 Domestic $1,915 1,643 16.6
 International 1,491 1,343 11.0
 Total $3,406 2,986 14.1
 Domestic $5,082 4,686 8.5
 International 5,168 4,613 12.0
 Worldwide $10,250 9,299 10.2
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in Millions Except Per Share Figures)
 Third quarter 1992
 Percent
 Amount to Sales
 Sales to customers $3,480 100.0
 Cost of products sold 1,188 34.1
 Selling, marketing and
 administrative expenses 1,426 41.0
 Research expense 275 7.9
 Interest income (15) (.4)
 Interest expense, net of portion
 capitalized 35 1.0
 Other income (14) (.4)
 Total 2,895 83.2
 Earnings before provision for
 taxes on income 585 16.8
 Provision for taxes on income 160 4.6
 Net earnings $425 12.2
 Net earnings per share $ .65
 Average shares outstanding 655.5
 Effective tax rate (as a percent) 27.4
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in millions except per share figures)
 Third quarter 1991
 Percent Percent
 Amount to Sales Increase
 Sales to customers $3,119 100.0 11.6
 Cost of products sold 1,079 34.6 10.1
 Selling, marketing and
 administrative expenses 1,272 40.8 12.1
 Research expense 242 7.8 13.6
 Interest income (21) (.7)
 Interest expense, net of portion
 capitalized 31 1.0
 Other income (5) (.2)
 Total 2,598 83.3 11.4
 Earnings before provision for
 taxes on income 521 16.7 12.3
 Provision for taxes on income 158 5.1 1.3
 Net earnings $363 11.6 17.1
 Net earnings per share $ .54 20.4
 Average shares outstanding 666.2
 Effective tax rate (as a percent) 30.3
 JOHNSON & JOHNSON AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings
 (Unaudited; in millions except per share figures)
 Nine months 1992
 Percent
 Amount to Sales
 Sales to customers $10,250 100.0
 Cost of products sold 3,412 33.3
 Selling, marketing and
 administrative expenses 4,156 40.5
 Research expense 801 7.8
 Interest income (69) (.7)
 Interest expense, net of portion
 capitalized 83 .8
 Other (income) expense (38) (.3)
 Total 8,345 81.4
 Earnings before provision for
 taxes on income 1,905 18.6
 Provision for taxes on income 552 5.4
 Net earnings $1,353 13.2
 Net earnings per share $2.05
 Average shares outstanding 660.8
 Effective tax rate (as a percent) 29.0
 JOHNSON & JOHNSON AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
 (Unaudited; in Millions Except Per Share Figures)
 Nine months 1991
 Percent Percent
 Amount to Sales Increase
 Sales to customers $9,299 100.0 10.2
 Cost of products sold 3,102 33.4 10.0
 Selling, marketing and
 administrative expenses 3,757 40.4 10.6
 Research expense 686 7.4 16.8
 Interest income (63) (.7)
 Interest expense, net of portion
 capitalized 104 1.1
 Other (income) expense 4 --
 Total 7,590 81.6 9.9
 Earnings before provision for
 taxes on income 1,709 18.4 11.5
 Provision for taxes on income 522 5.6 5.7
 Net earnings $1,187 12.8 14.0
 Net earnings per share $1.78 15.2
 Average shares outstanding 666.2
 Effective tax rate (as a percent) 30.5
 -0- 10/20/92
 /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 -- NY014 -- 2039 10/20/92 09:12 EDT
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