Johnson & Johnson
Apr 20, 2010

Johnson & Johnson Reports 2010 First-Quarter Results:

--Sales of $15.6 Billion Increased 4.0% Versus 2009 First Quarter; EPS was $1.62 --Excluding Special Items, 2010 First-Quarter EPS was $1.29, an increase of 2.4%*

NEW BRUNSWICK, N.J., April 20, 2010 /PRNewswire via COMTEX News Network/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $15.6 billion for the first quarter of 2010, an increase of 4.0% as compared to the first quarter of 2009. Operational results declined 0.1% and the positive impact of currency was 4.1%. Domestic sales declined 5.0%, while international sales increased 14.4%, reflecting operational growth of 5.5% and a positive currency impact of 8.9%.

Net earnings and diluted earnings per share for the first quarter of 2010 were $4.5 billion and $1.62, respectively. First-quarter 2010 net earnings included an after-tax gain of $910 million representing the net impact of litigation matters. Excluding this special item, net earnings for the current quarter were $3.6 billion and diluted earnings per share were $1.29, representing increases of 3.1% and 2.4%, respectively, as compared to the same period in 2009.* The Company updated its earnings guidance for full-year 2010 to $4.80 - $4.90 per share to reflect recent changes in foreign currency exchange rates. Earnings guidance excludes the impact of special items and now incorporates the impact of recently enacted health care reform legislation.

"Thanks to the outstanding efforts of our people, we were able to deliver solid financial results," said William C. Weldon, Chairman and Chief Executive Officer. "This was accomplished despite a major product recall and the continued impact of patent expirations. We are well positioned for future growth."

Worldwide Consumer sales of $3.8 billion for the first quarter represented an increase of 1.5% versus the prior year consisting of a decrease of 3.7% operationally and a positive impact from currency of 5.2%. Domestic sales decreased 9.6%; international sales increased 11.1%, which reflected an operational increase of 1.4% and a positive currency impact of 9.7%.

Positive contributors to operational results were NEUTROGENA(R), AVEENO(R) and LE PETIT MARSEILLAIS(R) skin care products; ZYRTEC(R) over-the-counter allergy treatment; international sales of LISTERINE(R) antiseptic mouthrinse; and women's sanitary protection products. These operational sales increases were more than offset by the impact of the previously announced recall of selected OTC products as well as the devaluation of the Venezuelan currency.

Worldwide Pharmaceutical sales of $5.6 billion for the first quarter represented a decrease of 2.5% versus the prior year consisting of an operational decline of 5.7% and a positive impact from currency of 3.2%. Domestic sales decreased 12.7%; international sales increased 15.5%, which reflected an operational increase of 6.6% and a positive currency impact of 8.9%.

Products with strong operational growth included REMICADE(R) (infliximab), a biologic approved for the treatment of a number of immune mediated inflammatory diseases; PREZISTA(R) (darunavir), a treatment for HIV; VELCADE(R) (bortezomib), a treatment for multiple myeloma; and international sales of RISPERDAL(R) CONSTA(R) (risperidone) Long-Acting Treatment, an antipsychotic medication. Strong growth was also achieved from newly launched products including STELARA(TM) (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; and SIMPONI(TM) (golimumab), a biologic approved to treat adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis.

Sales results of TOPAMAX(R) (topiramate), an antiepileptic and a treatment for migraine, and RISPERDAL(R) (risperidone), an antipsychotic medication, were negatively impacted by generic competition.

Worldwide Medical Devices and Diagnostics sales of $6.2 billion for the first quarter represented an increase of 12.5% versus the prior year consisting of an operational increase of 8.1% and a positive currency impact of 4.4%. Domestic sales increased 8.8%; international sales increased 15.9%, which reflected an operational increase of 7.5% and a positive currency impact of 8.4%.

Primary contributors to operational growth included Ethicon's surgical care products; DePuy's orthopaedic joint reconstruction and sports medicine businesses; Ethicon Endo-Surgery's minimally invasive products and Advanced Sterilization Products' infection prevention solutions; and Ortho-Clinical Diagnostics' professional products. This growth was partially offset by lower sales in the Cordis franchise, reflecting continued competition in the drug-eluting stent market.

During the quarter, the Company filed for CE Mark in Europe for its NEVO(R) Sirolimus-Eluting Coronary Stent, the first drug-eluting stent to utilize RES TECHNOLOGY(TM) , eliminating the need for surface coated and permanent polymers.

About Johnson & Johnson

Caring for the world, one person at a time...inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 114,000 employees at more than 250 Johnson & Johnson companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Net earnings and diluted earnings per share excluding special items, such as the net impact of litigation gains, are non-GAAP financial measures and should not be considered replacements for GAAP results. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure can be found in the Investor Relations section of the Company's website at www.jnj.com.

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 Time. A simultaneous webcast of the meeting for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. These schedules include supplementary sales data, a condensed consolidated statement of earnings, and sales of key products/franchises. Additional information on Johnson & Johnson, including a pharmaceutical pipeline of selected compounds in late stage development and medical devices and diagnostics pipeline of selected products, can be found on the Company's website at www.jnj.com

(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 Johnson & Johnson'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 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 3, 2010. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments.)


    Johnson & Johnson and Subsidiaries

    Supplementary Sales Data


    (Unaudited;
     Dollars in
     Millions)                         FIRST QUARTER
    -----------                        -------------
                                                   Percent Change
                                                   --------------
                           2010   2009  Total        Operations   Currency
                           ----   ----  -----        ----------   --------
    Sales to customers
     by segment of
     business


    Consumer
        U.S.              1,560  1,726   (9.6)%            (9.6)         -
        International     2,206  1,985    11.1              1.4        9.7
        -------------     -----  -----    ----              ---        ---
                          3,766  3,711     1.5             (3.7)       5.2
                          =====  =====     ===             ====        ===

    Pharmaceutical
        U.S.              3,206  3,674  (12.7)            (12.7)         -
        International     2,432  2,106    15.5              6.6        8.9
        -------------     -----  -----    ----              ---        ---
                          5,638  5,780    (2.5)            (5.7)       3.2
                          =====  =====    ====             ====        ===

    Med Devices &
     Diagnostics
        U.S.              2,886  2,652     8.8              8.8          -
        International     3,341  2,883    15.9              7.5        8.4
        -------------     -----  -----    ----              ---        ---
                          6,227  5,535    12.5              8.1        4.4
                          =====  =====    ====              ===        ===

    U.S.                  7,652  8,052    (5.0)            (5.0)         -
    International         7,979  6,974    14.4              5.5        8.9
    -------------         -----  -----    ----              ---        ---
    Worldwide           $15,631 15,026     4.0%            (0.1)       4.1
    =========           ======= ======     ===             ====        ===


    Johnson & Johnson and Subsidiaries
    ----------------------------------

    Supplementary Sales
     Data


    (Unaudited; Dollars
     in Millions)                       FIRST QUARTER
    -------------------                 -------------
                                                     Percent Change
                                                     --------------
                            2010   2009    Total        Operations  Currency
                            ----   ----    -----        ----------  --------
    Sales to customers
     by  geographic area


    U.S.                  $7,652  8,052     (5.0)%            (5.0)        -
    ----                  ------  -----     -----             ----       ---

    Europe                 4,102  3,671      11.7              4.6       7.1
    Western Hemisphere
     excluding U.S.        1,280  1,062      20.5              3.5      17.0
    Asia-Pacific, Africa   2,597  2,241      15.9              7.8       8.1
    International          7,979  6,974      14.4              5.5       8.9
    -------------          -----  -----      ----              ---       ---

    Worldwide            $15,631 15,026       4.0%            (0.1)      4.1
    =========            ======= ======       ===             ====       ===



    Johnson & Johnson and Subsidiaries
    ----------------------------------
    Condensed Consolidated Statement of Earnings

    (Unaudited; in
     Millions Except Per
     Share Figures)                         FIRST QUARTER
    --------------------                    -------------
                                   2010               2009            Percent
                          --------------------  -----------------
                                       Percent            Percent    Increase
                          Amount      to Sales   Amount  to Sales   (Decrease)
    ------------------    ------      --------   ------  --------   ---------
    Sales to customers   $15,631         100.0  $15,026     100.0         4.0
    ------------------   -------         -----  -------     -----         ---
    Cost of products
     sold                  4,528          29.0    4,251      28.3         6.5
    Selling, marketing
     and administrative
     expenses              4,779          30.5    4,608      30.7         3.7
    Research expense       1,557          10.0    1,518      10.1         2.6
    Interest
     (income)expense,
     net                      81           0.5       81       0.5
    Other
     (income)expense,
     net                  (1,594)        (10.2)     (75)     (0.5)
    -----------------     ------         -----      ---      ----        ----
    Earnings before
     provision for taxes
     on income             6,280          40.2    4,643      30.9        35.3
    Provision for taxes
     on income             1,754          11.2    1,136       7.6        54.4
    -------------------    -----          ----    -----       ---        ----
    Net earnings          $4,526          29.0   $3,507      23.3        29.1
    ------------          ------          ----   ------      ----        ----


    Net earnings per
     share  (Diluted)      $1.62                  $1.26                  28.6

    Average shares
     outstanding
     (Diluted)           2,797.3                2,789.8

    Effective tax rate      27.9%                  24.5%

    --------------------
    Adjusted earnings before
     provision for taxes and
     net earnings
         Earnings before
          provision for taxes
          on income       $4,783 (1)      30.6   $4,643      30.9         3.0
         Net earnings     $3,616 (1)      23.1   $3,507      23.3         3.1
         Net earnings per
          share
          (Diluted)        $1.29 (1)              $1.26                   2.4
         Effective tax
          rate              24.4%                  24.5%
    ------------------      ----                   ----

    (1) The difference between as reported earnings and as adjusted earnings
    before provision for taxes on income, net earnings and net earnings per
    share (diluted) is the exclusion of income from net litigation of $1,497
    million, $910 million and $0.33 per share, respectively.



                                  REPORTED SALES vs. PRIOR PERIOD ($MM)
                                  -------------------------------------

                                      FIRST QUARTER
                                      -------------
                                                  % Change
                                                  --------
                                                  Operational
                          2010  2009 Reported          (1)      Currency
                          ----  ---- --------   --------------  --------
    CONSUMER SEGMENT
     (2)
    --------------------
    SKIN CARE
    ---------
    US                     452   423      6.9%             6.9%        -
    Intl                   468   419     11.7%             2.4%      9.3%
    WW                     920   842      9.3%             4.6%      4.7%
    BABY CARE
    ---------
    US                     103   102      1.0%             1.0%        -
    Intl                   426   387     10.1%             1.2%      8.9%
    WW                     529   489      8.2%             1.2%      7.0%
    ORAL CARE
    ---------
    US                     174   188     -7.4%            -7.4%        -
    Intl                   207   177     16.9%             5.1%     11.8%
    WW                     381   365      4.4%            -1.3%      5.7%
    OTC/NUTRITIONALS
    ----------------
    US                     542   726    -25.3%           -25.3%        -
    Intl                   665   622      6.9%            -2.7%      9.6%
    WW                   1,207 1,348    -10.5%           -15.0%      4.5%
    WOMEN'S HEALTH
    --------------
    US                     146   149     -2.0%            -2.0%        -
    Intl                   323   274     17.9%             7.8%     10.1%
    WW                     469   423     10.9%             4.4%      6.5%
    WOUND CARE / OTHER
    ------------------
    US                     143   138      3.6%             3.6%        -
    Intl                   117   106     10.4%               -      10.4%
    WW                     260   244      6.6%             2.1%      4.5%
    TOTAL CONSUMER
    --------------
    US                   1,560 1,726     -9.6%            -9.6%        -
    Intl                 2,206 1,985     11.1%             1.4%      9.7%
    WW                   3,766 3,711      1.5%            -3.7%      5.2%



    * See footnotes
     below

    PHARMACEUTICAL
     SEGMENT  (2) (5)
    ------------------
    ACIPHEX/PARIET
    --------------
    US                     119   138    -13.8%           -13.8%        -
    Intl                   141   125     12.8%             3.1%      9.7%
    WW                     260   263     -1.1%            -5.7%      4.6%
    CONCERTA
    --------
    US                     231   269    -14.1%           -14.1%        -
    Intl                    98    75     30.7%            17.3%     13.4%
    WW                     329   344     -4.4%            -7.3%      2.9%
    DURAGESIC/
     FENTANYL
     TRANSDERMAL
    ------------
    US                      38    75    -49.3%           -49.3%        -
    Intl                   146   156     -6.4%           -13.4%      7.0%
    WW                     184   231    -20.3%           -25.1%      4.8%
    LEVAQUIN/FLOXIN
    ---------------
    US                     363   408    -11.0%           -11.0%        -
    Intl                     8    17    -52.9%           -56.3%      3.4%
    WW                     371   425    -12.7%           -12.8%      0.1%
    PREZISTA
    --------
    US                      89    72     23.6%            23.6%        -
    Intl                    98    50     96.0%            80.3%     15.7%
    WW                     187   122     53.3%            46.8%      6.5%
    PROCRIT/EPREX
    -------------
    US                     290   321     -9.7%            -9.7%        -
    Intl                   233   229      1.7%            -6.2%      7.9%
    WW                     523   550     -4.9%            -8.2%      3.3%
    REMICADE
    --------
    US                     780   737      5.8%             5.8%        -
    US Exports (3)         400   286     39.9%            39.9%        -
    Intl                     6     5     20.0%            19.9%      0.1%
    WW                   1,186 1,028     15.4%            15.4%        -
    RISPERDAL/
     RISPERIDONE
    ------------
    US                       5   118    -95.8%           -95.8%        -
    Intl                   133   157    -15.3%           -20.1%      4.8%
    WW                     138   275    -49.8%           -52.5%      2.7%
    RISPERDAL CONSTA
    ----------------
    US                     117   126     -7.1%            -7.1%        -
    Intl                   262   199     31.7%            21.4%     10.3%
    WW                     379   325     16.6%            10.3%      6.3%
    TOPAMAX
    -------
    US                      57   495    -88.5%           -88.5%        -
    Intl                    91   107    -15.0%           -21.6%      6.6%
    WW                     148   602    -75.4%           -76.6%      1.2%
    VELCADE
    -------
    US                       -     -        -                -         -
    Intl                   261   192     35.9%            26.3%      9.6%
    WW                     261   192     35.9%            26.3%      9.6%
    OTHER
    -----
    US                     717   629     14.0%            14.0%        -
    Intl                   955   794     20.3%            11.1%      9.2%
    WW                   1,672 1,423     17.5%            12.4%      5.1%
    TOTAL
     PHARMACEUTICAL
    ---------------
    US                   3,206 3,674    -12.7%           -12.7%        -
    Intl                 2,432 2,106     15.5%             6.6%      8.9%
    WW                   5,638 5,780     -2.5%            -5.7%      3.2%
    MAJOR NEW PHARM
     PRODUCTS (4)
    -------------------
    INVEGA
    ------
    US                      69    66      4.5%             4.5%        -
    Intl                    39    25     56.0%            43.2%     12.8%
    WW                     108    91     18.7%            15.1%      3.6%
                             -     -     ----             ----       ---

    * See footnotes
     below

    MEDICAL DEVICES
     AND DIAGNOSTICS
     (2)
    -------------------
    CORDIS (6)
    ---------
    US                     251   246      2.0%             2.0%        -
    Intl                   421   422     -0.2%            -6.3%      6.1%
    WW                     672   668      0.6%            -3.3%      3.9%
    DEPUY
    -----
    US                     814   766      6.3%             6.3%        -
    Intl                   640   526     21.7%            11.2%     10.5%
    WW                   1,454 1,292     12.5%             8.2%      4.3%
    DIABETES CARE
    -------------
    US                     290   270      7.4%             7.4%        -
    Intl                   307   271     13.3%             5.4%      7.9%
    WW                     597   541     10.4%             6.4%      4.0%
    ETHICON
    -------
    US                     510   405     25.9%            25.9%        -
    Intl                   637   548     16.2%             7.6%      8.6%
    WW                   1,147   953     20.4%            15.5%      4.9%
    ETHICON ENDO-
     SURGERY
    -------------
    US                     483   454      6.4%             6.4%        -
    Intl                   685   561     22.1%            12.9%      9.2%
    WW                   1,168 1,015     15.1%            10.0%      5.1%
    ORTHO-CLINICAL
     DIAGNOSTICS
    --------------
    US                     288   277      4.0%             4.0%        -
    Intl                   237   190     24.7%            16.1%      8.6%
    WW                     525   467     12.4%             8.9%      3.5%
    VISION CARE
    -----------
    US                     249   234      6.4%             6.4%        -
    Intl                   415   365     13.7%             6.9%      6.8%
    WW                     664   599     10.9%             6.8%      4.1%
    TOTAL MEDICAL
     DEVICES AND
     DIAGNOSTICS
    -------------
    US                   2,886 2,652      8.8%             8.8%        -
    Intl                 3,341 2,883     15.9%             7.5%      8.4%
    WW                   6,227 5,535     12.5%             8.1%      4.4%
                           ---   ---     ----              ---       ---



    (1) Operational growth excludes the effect of currency
    (2) Select areas (unaudited)
    (3) Reported in U.S. sales
    (4) Included in Other
    (5) Prior year conforms to current year presentation
    (6) Includes sales of Drug-Eluting Stents for Q1 2010 of $60, $131
    and $191MM Domestic, International and Worldwide respectively
          Includes sales of Drug-Eluting Stents for Q1 2009 of $67, $184 and
          $251MM Domestic, International and Worldwide respectively


SOURCE Johnson & Johnson

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