NEW BRUNSWICK, N.J., April 19, 2005 /PRNewswire-FirstCall via COMTEX/ -- Johnson & Johnson today announced sales for the first quarter of 2005 of $12.8 billion, an increase of 11.0% over the prior year. The increase was attributable to operational growth of 8.8% and a favorable currency impact of 2.2%. Domestic sales were up 4.9%, while international sales increased 20.1%, reflecting operational growth of 14.7% and a positive currency impact of 5.4%.
Net earnings and diluted earnings per share for the first quarter were $2.9 billion and $.97, increases of 17.4% and 16.9%, respectively, as compared with the same period in 2004.
"Our strategic principle of being broadly based continues to serve us well," said William C. Weldon, Chairman and Chief Executive Officer. "I'm pleased that the strong performance of each of the franchises in our Medical Devices and Diagnostics segment and the solid results in our Consumer segment were able to add to the more modest increase from our Pharmaceutical business during the quarter."
Worldwide Medical Devices and Diagnostics sales of $4.8 billion for the first quarter represented an increase over the prior year of 16.0% with operational growth of 13.4% and a positive impact from currency of 2.6%. Domestic sales increased 7.6%, while international sales increased 25.4% (19.9% from operations and 5.5% from currency).
All franchises were contributors to the operational growth which included DePuy's orthopaedic joint reconstruction and spinal products; LifeScan's blood glucose monitoring products; Vistakon's disposable contact lenses; Ortho-Clinical Diagnostics' professional diagnostic products; Ethicon's wound care and women's health products; Ethicon Endo-Surgery's minimally invasive products, and Cordis' circulatory disease management products.
During the quarter, the Company announced that it had entered into a definitive agreement to acquire CLOSURE Medical Corporation, a global leader in biomaterial-based medical devices.
Worldwide Pharmaceutical sales of $5.8 billion for the first quarter represented an increase over the prior year of 7.0% with operational growth of 5.3% and a positive impact from currency of 1.7%. Domestic sales increased 3.8%, while international sales increased 13.8% (8.5% from operations and 5.3% from currency).
Sales growth reflects the strong performance of REMICADE, a treatment for rheumatoid arthritis, Crohn's disease and ankylosing spondylitis; TOPAMAX, an antiepileptic and a treatment for the prevention of migraine headaches; RISPERDAL and RISPERDAL CONSTA, an antipsychotic medication; LEVAQUIN, an anti-infective; CONCERTA, a treatment for attention deficit hyperactivity disorder and ACIPHEX/PARIET, a proton pump inhibitor for gastrointestinal disorders. PROCRIT/EPREX, a product for the treatment of anemia, was negatively impacted by competition and both the hormonal contraceptive franchise and DURAGESIC, a transdermal patch for chronic pain, were negatively impacted by generic competition.
In April, the Company announced the completion of its acquisition of TransForm Pharmaceuticals, Inc., which specializes in the discovery of superior formulations and novel crystalline forms of drug molecules. In addition, the Company submitted a new drug application to the U.S. Food and Drug Administration (FDA) for REMICADE (infliximab) for the treatment of ulcerative colitis.
Worldwide Consumer segment sales of $2.3 billion for the first quarter represented an increase over the prior year of 11.4% with operational growth of 8.9% and a positive impact from currency of 2.5%. Domestic sales increased 3.1%, while international sales increased 20.7% (15.4% from operations and 5.3% from currency).
Strong growth in Consumer sales was achieved by McNeil Consumer's over-the-counter adult TYLENOL products, McNeil Nutritional's SPLENDA sweetener and the skin care lines of RoC and AVEENO.
Johnson & Johnson is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 200 Johnson & Johnson operating companies employ approximately 111,000 men and women in 57 countries and sell products throughout the world.
NOTE TO INVESTORS
Johnson & Johnson will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Daylight Savings Time. A simultaneous webcast of the call for interested investors and others may be accessed by visiting the Johnson & Johnson website at http://www.jnj.com. A replay will be available two hours after the live webcast by visiting http://www.jnj.com and clicking on "Webcasts/Presentations" in the Investor Relations section.
(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99(b) of the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2005. Copies of this Form 10-K are available online at www.sec.gov or on request from the Company. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.)
For more information on Johnson & Johnson, please visit the Company's website at http://www.jnj.com .
Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) FIRST QUARTER Percent Change 2005 2004 Total Operations Currency Sales to customers by segment of business Consumer U.S. $ 1,114 1,081 3.1 % 3.1 -- International 1,166 966 20.7 15.4 5.3 2,280 2,047 11.4 8.9 2.5 Pharmaceutical U.S. 3,783 3,643 3.8 3.8 -- International 1,972 1,733 13.8 8.5 5.3 5,755 5,376 7.0 5.3 1.7 Med Devices & Diagnostics U.S. 2,361 2,194 7.6 7.6 -- International 2,436 1,942 25.4 19.9 5.5 4,797 4,136 16.0 13.4 2.6 U.S. 7,258 6,918 4.9 4.9 -- International 5,574 4,641 20.1 14.7 5.4 Worldwide $12,832 11,559 11.0 % 8.8 2.2 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) FIRST QUARTER Percent Change 2005 2004 Total Operations Currency Sales to customers by geographic area U.S. $ 7,258 6,918 4.9 % 4.9 -- Europe 3,176 2,708 17.3 11.2 6.1 Western Hemisphere excluding U.S. 725 597 21.4 15.4 6.0 Asia-Pacific, Africa 1,673 1,336 25.2 21.5 3.7 International 5,574 4,641 20.1 14.7 5.4 Worldwide $12,832 11,559 11.0 % 8.8 2.2 Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures) FIRST QUARTER
2005 2004 Percent Percent Percent Increase Amount to Amount to (Decrease) Sales Sales Sales to customers $12,832 100.0 $11,559 100.0 11.0 Cost of products sold 3,482 27.1 3,367 29.1 3.4 Selling, marketing and administrative expenses 4,043 31.5 3,640 31.5 11.1 Research expense 1,347 10.5 1,095 9.5 23.0 Interest (income)expense, net (69) (0.5) 6 0.1 Other (income)expense, net (33) (0.3) (53) (0.5) (37.7) Earnings before provision for taxes on income 4,062 31.7 3,504 30.3 15.9 Provision for taxes on income 1,135 8.9 1,011 8.7 12.3 Net earnings $ 2,927 22.8 $2,493 21.6 17.4 Net earnings per share (Diluted) $ 0.97 $ 0.83 16.9 Average shares outstanding (Diluted) 3,023.7 3,004.6 Effective tax rate 27.9 % 28.8 %
SOURCE Johnson & Johnson
Press Contact: Jeffrey J. Leebaw, +1-732-524-3350 (Home), +1-732-821-6007, Investor Contacts: Helen E. Short, +1-732-524-6491, Stan Panasewicz, +1-732-524-2524
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