July 19, 2011

Johnson & Johnson Reports 2011 Second-Quarter Results:

Sales of $16.6 Billion Increased 8.3% Versus 2010 Second-Quarter; Second Quarter EPS was $1.00 Excluding Special Items, 2011 Second-Quarter EPS of $1.28 Increased 5.8%*

NEW BRUNSWICK, N.J., July 19, 2011 /PRNewswire-FirstCall/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $16.6 billion for the second quarter of 2011, an increase of 8.3% as compared to the second quarter of 2010.  Operational results increased 2.6% and the positive impact of currency was 5.7%.  Domestic sales increased 0.1%, while international sales increased 15.9%, reflecting operational growth of 4.9% and a positive currency impact of 11.0%.

Net earnings and diluted earnings per share for the second quarter of 2011 were $2.8 billion and $1.00, respectively. Second-quarter 2011 net earnings included an after-tax charge of $549 million representing the previously announced restructuring by Cordis Corporation. Second-quarter 2011 net earnings also included a net after-tax charge of $223 million representing the net impact of expenses related to litigation, additional DePuy ASR™ Hip recall costs, and an after-tax mark-to-market gain associated with the currency option related to the planned acquisition of Synthes, Inc. Second-quarter 2010 net earnings included an after-tax gain of $67 million representing the net impact of litigation matters. Excluding these special items, net earnings for the current quarter were $3.5 billion and diluted earnings per share were $1.28, representing increases of 4.9% and 5.8%, respectively, as compared to the same period in 2010.*  

The Company maintained its earnings guidance for full-year 2011 of $4.90 - $5.00 per share. The Company's guidance excludes the impact of special items.

"Our recently launched pharmaceutical products continued to achieve strong growth and contributed to our solid second quarter results. We received several new product approvals across our businesses which will benefit patients around the world and drive future growth," said William C. Weldon, Chairman and Chief Executive Officer. "We continue to invest in building leadership positions and capabilities, and our pending acquisition of Synthes demonstrates our ongoing commitment to serve patients while enhancing shareholder value," said Weldon.

Worldwide Consumer sales of $3.8 billion for the second quarter represented an increase of 4.0% versus the prior year consisting of an operational decline of 1.8% and a positive impact from currency of 5.8%. Domestic sales decreased 8.5%; international sales increased 12.4%, which reflected an operational increase of 2.8% and a positive currency impact of 9.6%.

Sales in U.S. over-the-counter medicines were significantly impacted by the suspension of manufacturing at the McNeil Consumer Healthcare facility in Fort Washington, Pa., as well as the impact on production volumes related to ongoing efforts to enhance quality and manufacturing systems. Positive contributors to operational results were NEUTROGENA®, LE PETIT MARSEILLAIS® and AVEENO® skin care products; international sales of over-the-counter medicines and nutritionals; and baby care products.  

In July, the Company completed its acquisition of several over-the-counter cough and cold brands in Russia from J B Chemicals & Pharmaceuticals Limited.

Worldwide Pharmaceutical sales of $6.2 billion for the second quarter represented an increase of 12.2% versus the prior year with operational growth of 7.0% and a positive impact from currency of 5.2%. Domestic sales increased 4.1%; international sales increased 22.6%, which reflected an operational increase of 10.7% and a positive currency impact of 11.9%.  

Sales results include the strong performance of recently launched products, including STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; ZYTIGA™ (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of men with metastatic, castration-resistant prostate cancer; and INVEGA® SUSTENNA™ (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the acute and maintenance treatment of schizophrenia in adults.

Several other products also contributed to the operational sales growth including REMICADE® (infliximab), a biologic approved for the treatment of a number of immune mediated inflammatory diseases; vaccines, proteins and antibodies from Crucell that prevent and/or treat infectious diseases; PREZISTA® (darunavir), a treatment for HIV; CAELYX® (pegylated liposomal doxorubicin hydrochloride), a treatment for certain types of cancer; and VELCADE® (bortezomib), a treatment for multiple myeloma. Sales results for LEVAQUIN® (levofloxacin), a treatment for bacterial infections, were negatively impacted by slowing sales ahead of the loss of marketing exclusivity in the U.S. in June 2011.                

During the quarter, the U.S. Food and Drug Administration (FDA) approved ZYTIGA™ (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of men with metastatic, castration-resistant prostate cancer who have received prior chemotherapy containing docetaxel. The FDA also approved EDURANT™ (rilpivirine) tablets for use in combination with other antiretroviral agents in the treatment of human immunodeficiency virus type 1 (HIV-1) in adults who have never taken HIV therapy.  In addition, the FDA approved XARELTO® (rivaroxaban tablets), a novel, and once-daily, oral anticoagulant for the prevention (prophylaxis) of deep vein thrombosis, a condition which may lead to a pulmonary embolism in patients undergoing knee or hip replacement surgery.

Also during the quarter, the Company filed a marketing authorization application with the European Medicines Agency for DACOGEN® (decitabine) for the treatment of acute myeloid leukemia.

In July, the Company completed the divestiture of its Animal Health business to Elanco, a division of Eli Lilly. Also in July, the Company announced a definitive agreement to divest the assets of its Ortho Dermatologics division in the U.S. to subsidiaries of Valeant Pharmaceuticals International, Inc.

Worldwide Medical Devices and Diagnostics sales of $6.6 billion for the second quarter represented an increase of 7.2% versus the prior year consisting of an operational increase of 1.3% and a positive currency impact of 5.9%. Domestic sales increased 0.1%; international sales increased 13.4%, which reflected an operational increase of 2.2% and a positive currency impact of 11.2%.  

Primary contributors to operational growth included Ethicon's surgical care products; Ethicon Endo-Surgery's Advanced Sterilization Products and international sales of minimally invasive products; Ortho-Clinical Diagnostics' products; Diabetes Care's blood glucose monitoring and insulin delivery products; Biosense Webster's electrophysiology business; DePuy's sports medicine and neurovascular business; and Vistakon's disposable contact lenses. This growth was partially offset by lower sales in the Cardiovascular Care business, reflecting continued market and competitive pressures in drug-eluting stents.

During the quarter, the FDA approved EXOSEAL™ Vascular Closure Device which incorporates a number of new advances in technology and simplicity of design to provide precise and secure extravascular arterial closure. The FDA also approved PINNACLE® CoMplete® Acetabular Hip System, the first ceramic-on-metal hip implant available in the United States. In addition, Animas® Vibe™, a continuous glucose monitoring (CGM)-enabled insulin pump system with Dexcom G4™ CGM technology received CE Mark approval.  

Ethicon Endo-Surgery (EES) launched several products during the quarter which included the new EES Generator, the first system of its kind that powers both ultrasonic and advanced bipolar technologies; and the ENSEAL® G2 Super Jaw, the first advanced bipolar energy technology that offers surgeons strong vessel seals, while remaining gentle on tissue. Advanced Sterilization Products (ASP) launched GLOSAIR™ Healthcare Environmental Decontamination to protect against the risk of deadly infections in healthcare facilities.

On April 27th, the Company announced that it had entered into a definitive agreement to acquire Synthes, Inc., a premier global manufacturer of orthopaedic devices for CHF159 per share, or approximately $21.3 billion subject to the terms of the merger agreement and currency values at the time of closing. Upon completion of this transaction, Synthes and the DePuy Companies of Johnson & Johnson together will create the world's most innovative and comprehensive orthopaedics business.

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 116,000 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 are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the financial schedules accompanying this press release and can be found in the Investor Relations section of the Company's website at www.investor.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 the expectations and projections of Johnson & Johnson.  Risks and uncertainties include, but are not limited to, general industry conditions and competition; economic factors, 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; trends toward health care cost containment; and increased scrutiny of the healthcare industry by government agencies.  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 2, 2011.  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)

SECOND QUARTER


SIX MONTHS






Percent Change






Percent Change


2011


2010


Total


Operations


Currency


2011


2010


Total


Operations


Currency

Sales to customers by




















segment of business








































Consumer




















   U.S.

$         1,339


1,463


(8.5)

%

(8.5)


-


$          2,684


3,023


(11.2)

%

(11.2)


-

   International

2,454


2,184


12.4


2.8


9.6


4,791


4,390


9.1


2.6


6.5


3,793


3,647


4.0


(1.8)


5.8


7,475


7,413


0.8


(3.0)


3.8





















Pharmaceutical




















   U.S.

3,239


3,110


4.1


4.1


-


6,630


6,316


5.0


5.0


-

   International

2,994


2,443


22.6


10.7


11.9


5,662


4,875


16.1


8.9


7.2


6,233


5,553


12.2


7.0


5.2


12,292


11,191


9.8


6.7


3.1





















Med Devices & Diagnostics




















   U.S.

2,869


2,865


0.1


0.1


-


5,741


5,751


(0.2)


(0.2)


-

   International

3,702


3,265


13.4


2.2


11.2


7,262


6,606


9.9


2.5


7.4


6,571


6,130


7.2


1.3


5.9


13,003


12,357


5.2


1.3


3.9





















U.S.

7,447


7,438


0.1


0.1


-


15,055


15,090


(0.2)


(0.2)


-

International

9,150


7,892


15.9


4.9


11.0


17,715


15,871


11.6


4.6


7.0

Worldwide

$       16,597


15,330


8.3

%

2.6


5.7


$        32,770


30,961


5.8

%

2.2


3.6



Johnson & Johnson and Subsidiaries

Supplementary Sales Data


(Unaudited; Dollars in Millions)

SECOND QUARTER


SIX MONTHS






Percent Change






Percent Change


2011


2010


Total


Operations


Currency


2011


2010


Total


Operations


Currency

Sales to customers by




















geographic area








































U.S.

$         7,447


7,438


0.1

%

0.1


-


$       15,055


15,090


(0.2)

%

(0.2)


-





















Europe

4,543


3,832


18.6


5.4


13.2


8,726


7,934


10.0


3.6


6.4

Western Hemisphere excluding U.S.

1,543


1,375


12.2


5.3


6.9


2,979


2,655


12.2


6.2


6.0

Asia-Pacific, Africa

3,064


2,685


14.1


4.2


9.9


6,010


5,282


13.8


5.2


8.6

International

9,150


7,892


15.9


4.9


11.0


17,715


15,871


11.6


4.6


7.0





















Worldwide

$       16,597


15,330


8.3

%

2.6


5.7


$       32,770


30,961


5.8

%

2.2


3.6



Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings


(Unaudited; in Millions Except Per Share Figures)

SECOND QUARTER



2011


2010


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$       16,597


100.0


$       15,330


100.0


8.3

Cost of products sold

5,172


31.2


4,630


30.2


11.7

Selling, marketing and administrative expenses

5,215


31.4


4,756


31.0


9.7

Research and development expense

1,882


11.3


1,648


10.8


14.2

Interest (income)expense, net

111


0.7


58


0.4



Other (income)expense, net

206


1.3


18


0.1



Restructuring expense

589


3.5


-


-



Earnings before provision for taxes on income

3,422


20.6


4,220


27.5


(18.9)

Provision for taxes on income

646


3.9


771


5.0


(16.2)

Net earnings

$         2,776


16.7


$         3,449


22.5


(19.5)











Net earnings per share  (Diluted)

$           1.00




$           1.23




(18.7)











Average shares outstanding  (Diluted)

2,781.3




2,796.0















Effective tax rate

18.9

%



18.3

%














Adjusted earnings before provision for taxes and net earnings










    Earnings before provision for taxes

    on income

$         4,413

(1)

26.6


$         4,377

(2)

28.6


0.8

    Net earnings

$         3,548

(1)

21.4


$         3,382

(2)

22.1


4.9

    Net earnings per share  (Diluted)

$           1.28

(1)



$           1.21

(2)



5.8

    Effective tax rate

19.6

%



22.7

%














(1) The $991 million difference between as reported earnings and as adjusted earnings before provision for taxes on income is the exclusion of expense due to restructuring ($676 million, of which $589 million is reported as restructuring expense and $87 million is included in cost of products sold), expense due to litigation matters ($363 million), additional DePuy ASR™ Hip recall costs ($54 million) and a mark-to-market gain associated with a currency option related to the planned acquisition of Synthes ($102 million).  Net earnings and net earnings per share (diluted) on these items are $772 million and $0.28 per share, respectively.  


(2) The difference between as reported and as adjusted earnings before provision for taxes on income, net earnings and net earnings per share (diluted) is the exclusion of net litigation expense of $157 million before tax, net litigation income of $67 million after tax and $0.02 per share, respectively.



Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings


(Unaudited; in Millions Except Per Share Figures)

SIX MONTHS



2011


2010


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$       32,770


100.0


$       30,961


100.0


5.8

Cost of products sold

9,950


30.4


9,158


29.6


8.6

Selling, marketing and administrative expenses

10,271


31.3


9,535


30.8


7.7

Research and development expense

3,620


11.0


3,205


10.4


12.9

Interest (income)expense, net

215


0.7


139


0.4



Other (income)expense, net

193


0.6


(1,576)


(5.1)



Restructuring expense

589


1.8


-


-



Earnings before provision for taxes on income

7,932


24.2


10,500


33.9


(24.5)

Provision for taxes on income

1,680


5.1


2,525


8.1


(33.5)

Net earnings

$         6,252


19.1


$         7,975


25.8


(21.6)











Net earnings per share  (Diluted)

$           2.25




$           2.85




(21.1)











Average shares outstanding  (Diluted)

2,778.1




2,796.1















Effective tax rate

21.2

%



24.0

%














Adjusted earnings before provision for taxes and net earnings










    Earnings before provision for taxes

    on income

$         9,269

(1)

28.3


$         9,160

(2)

29.6


1.2

    Net earnings

$         7,295

(1)

22.3


$         6,998

(2)

22.6


4.2

    Net earnings per share  (Diluted)

$           2.63

(1)



$           2.50

(2)



5.2

    Effective tax rate

21.3

%



23.6

%














(1) The $1,337 million difference between as reported earnings and as adjusted earnings before provision for taxes on income is the exclusion of expense due to restructuring ($676 million, of which $589 million is reported as restructuring expense and $87 million is included in cost of products sold), expense due to litigation matters ($654 million), additional DePuy ASR™ Hip recall costs ($109 million) and a mark-to-market gain associated with a currency option related to the planned acquisition of Synthes ($102 million).  Net earnings and net earnings per share (diluted) on these items are $1,043 million and $0.38 per share, respectively.  


(2) 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 $1,340 million, $977 million and $0.35 per share, respectively.




REPORTED SALES vs. PRIOR PERIOD ($MM)



SECOND QUARTER


SIX MONTHS




% Change



% Change


2011

2010

Reported

Operational (1)

Currency


2011

2010

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2)












BABY CARE












US

105

99

6.1%

6.1%

-


210

202

4.0%

4.0%

-

Intl

493

438

12.6%

5.0%

7.6%


949

864

9.8%

4.1%

5.7%

WW

598

537

11.4%

5.2%

6.2%


1,159

1,066

8.7%

4.1%

4.6%

ORAL CARE












US

158

148

6.8%

6.8%

-


321

322

-0.3%

-0.3%

-

Intl

241

224

7.6%

-2.1%

9.7%


469

431

8.8%

1.6%

7.2%

WW

399

372

7.3%

1.5%

5.8%


790

753

4.9%

0.8%

4.1%

OTC/NUTRITIONALS












US

330

492

-32.9%

-32.9%

-


727

1,034

-29.7%

-29.7%

-

Intl

753

649

16.0%

4.8%

11.2%


1,485

1,314

13.0%

5.8%

7.2%

WW

1,083

1,141

-5.1%

-11.5%

6.4%


2,212

2,348

-5.8%

-9.8%

4.0%

SKIN CARE












US

449

422

6.4%

6.4%

-


875

874

0.1%

0.1%

-

Intl

480

421

14.0%

4.3%

9.7%


953

889

7.2%

1.1%

6.1%

WW

929

843

10.2%

5.3%

4.9%


1,828

1,763

3.7%

0.6%

3.1%

WOMEN'S HEALTH












US

121

137

-11.7%

-11.7%

-


246

283

-13.1%

-13.1%

-

Intl

356

329

8.2%

-0.9%

9.1%


690

652

5.8%

-0.1%

5.9%

WW

477

466

2.4%

-4.0%

6.4%


936

935

0.1%

-4.0%

4.1%

WOUND CARE/OTHER












US

176

165

6.7%

6.7%

-


305

308

-1.0%

-1.0%

-

Intl

131

123

6.5%

-3.3%

9.8%


245

240

2.1%

-4.6%

6.7%

WW

307

288

6.6%

2.8%

3.8%


550

548

0.4%

-2.7%

3.1%

TOTAL CONSUMER












US

1,339

1,463

-8.5%

-8.5%

-


2,684

3,023

-11.2%

-11.2%

-

Intl

2,454

2,184

12.4%

2.8%

9.6%


4,791

4,390

9.1%

2.6%

6.5%

WW

3,793

3,647

4.0%

-1.8%

5.8%


7,475

7,413

0.8%

-3.0%

3.8%

























See footnotes at end of schedule




REPORTED SALES vs. PRIOR PERIOD ($MM)



SECOND QUARTER


SIX MONTHS




% Change



% Change


2011

2010

Reported

Operational (1)

Currency


2011

2010

Reported

Operational (1)

Currency

PHARMACEUTICAL SEGMENT  (2) (4)












ACIPHEX/PARIET












US

101

121

-16.5%

-16.5%

-


210

240

-12.5%

-12.5%

-

Intl

146

133

9.8%

-2.7%

12.5%


276

274

0.7%

-5.9%

6.6%

WW

247

254

-2.8%

-9.4%

6.6%


486

514

-5.4%

-8.9%

3.5%

CONCERTA/METHYLPHENIDATE












US

234

223

4.9%

4.9%

-


488

454

7.5%

7.5%

-

Intl

115

100

15.0%

3.6%

11.4%


223

198

12.6%

4.9%

7.7%

WW

349

323

8.0%

4.5%

3.5%


711

652

9.0%

6.7%

2.3%

DOXIL/CAELYX












US

56

78

-28.2%

-28.2%

-


120

150

-20.0%

-20.0%

-

Intl

82

10

*

*

11.0%


157

18

*

*

7.0%

WW

138

88

56.8%

50.3%

6.5%


277

168

64.9%

60.9%

4.0%

DURAGESIC/FENTANYL TRANSDERMAL












US

34

37

-8.1%

-8.1%

-


38

75

-49.3%

-49.3%

-

Intl

133

147

-9.5%

-19.8%

10.3%


256

293

-12.6%

-19.3%

6.7%

WW

167

184

-9.2%

-17.4%

8.2%


294

368

-20.1%

-25.4%

5.3%

LEVAQUIN/FLOXIN












US

149

289

-48.4%

-48.4%

-


571

652

-12.4%

-12.4%

-

Intl

10

11

-9.1%

-13.3%

4.2%


22

19

15.8%

11.0%

4.8%

WW

159

300

-47.0%

-47.2%

0.2%


593

671

-11.6%

-11.7%

0.1%

PREZISTA












US

128

99

29.3%

29.3%

-


254

188

35.1%

35.1%

-

Intl

185

105

76.2%

65.9%

10.3%


325

203

60.1%

54.3%

5.8%

WW

313

204

53.4%

47.3%

6.1%


579

391

48.1%

44.8%

3.3%

PROCRIT/EPREX












US

257

306

-16.0%

-16.0%

-


447

596

-25.0%

-25.0%

-

Intl

218

220

-0.9%

-11.2%

10.3%


425

453

-6.2%

-11.8%

5.6%

WW

475

526

-9.7%

-14.0%

4.3%


872

1,049

-16.9%

-19.3%

2.4%

REMICADE












US

836

783

6.8%

6.8%

-


1,624

1,563

3.9%

3.9%

-

US Exports (3)

527

341

54.5%

54.5%

-


1,017

741

37.2%

37.2%

-

Intl

8

6

33.3%

33.3%

0.0%


15

12

25.0%

25.0%

0.0%

WW

1,371

1,130

21.3%

21.3%

0.0%


2,656

2,316

14.7%

14.7%

0.0%

RISPERDAL/RISPERIDONE












US

11

(17)

-

-

-


19

(12)

-

-

-

Intl

128

134

-4.5%

-14.1%

9.6%


247

267

-7.5%

-14.4%

6.9%

WW

139

117

18.8%

7.8%

11.0%


266

255

4.3%

-3.0%

7.3%

RISPERDAL CONSTA












US

110

115

-4.3%

-4.3%

-


224

232

-3.4%

-3.4%

-

Intl

294

240

22.5%

8.7%

13.8%


584

502

16.3%

8.9%

7.4%

WW

404

355

13.8%

4.5%

9.3%


808

734

10.1%

5.0%

5.1%

TOPAMAX












US

41

59

-30.5%

-30.5%

-


91

116

-21.6%

-21.6%

-

Intl

80

83

-3.6%

-13.2%

9.6%


159

174

-8.6%

-13.8%

5.2%

WW

121

142

-14.8%

-20.4%

5.6%


250

290

-13.8%

-16.9%

3.1%

VELCADE












US

-

-

-

-

-


-

-

-

-

-

Intl

347

286

21.3%

10.0%

11.3%


627

547

14.6%

7.9%

6.7%

WW

347

286

21.3%

10.0%

11.3%


627

547

14.6%

7.9%

6.7%

OTHER












US

755

676

11.7%

11.7%

-


1,527

1,321

15.6%

15.6%

-

Intl

1,248

968

28.9%

17.6%

11.3%


2,346

1,915

22.5%

15.2%

7.3%

WW

2,003

1,644

21.8%

15.2%

6.6%


3,873

3,236

19.7%

15.4%

4.3%

TOTAL PHARMACEUTICAL












US

3,239

3,110

4.1%

4.1%

-


6,630

6,316

5.0%

5.0%

-

Intl

2,994

2,443

22.6%

10.7%

11.9%


5,662

4,875

16.1%

8.9%

7.2%

WW

6,233

5,553

12.2%

7.0%

5.2%


12,292

11,191

9.8%

6.7%

3.1%













See footnotes at end of schedule




REPORTED SALES vs. PRIOR PERIOD ($MM)



SECOND QUARTER


SIX MONTHS


MAJOR NEW PHARM PRODUCTS (4)

2011

2010

Total

% Change


2011

2010

Total

% Change

(INCLUDED IN OTHER)








INTELENCE








US

38

32

18.8%


76

63

20.6%

Intl

41

24

70.8%


72

48

50.0%

WW

79

56

41.1%


148

111

33.3%

INVEGA








US

76

68

11.8%


145

137

5.8%

Intl

52

34

52.9%


103

73

41.1%

WW

128

102

25.5%


248

210

18.1%

SIMPONI








US

61

47

29.8%


114

86

32.6%

Intl

6

12

-50.0%


48

15

220.0%

WW

67

59

13.6%


162

101

60.4%

STELARA








US

100

49

104.1%


205

105

95.2%

Intl

76

37

105.4%


137

68

101.5%

WW

176

86

104.7%


342

173

97.7%

















See footnotes at end of schedule




REPORTED SALES vs. PRIOR PERIOD ($MM)



SECOND QUARTER


SIX MONTHS




% Change



% Change


2011

2010

Reported

Operational (1)

Currency


2011

2010

Reported

Operational (1)

Currency

MEDICAL DEVICES AND DIAGNOSTICS   (2)












CARDIOVASCULAR CARE (5)












US

210

265

-20.8%

-20.8%

-


452

516

-12.4%

-12.4%

-

Intl

377

390

-3.3%

-12.9%

9.6%


770

811

-5.1%

-11.4%

6.3%

WW

587

655

-10.4%

-16.1%

5.7%


1,222

1,327

-7.9%

-11.7%

3.8%

DEPUY












US

770

776

-0.8%

-0.8%

-


1,581

1,590

-0.6%

-0.6%

-

Intl

699

599

16.7%

4.0%

12.7%


1,391

1,239

12.3%

4.2%

8.1%

WW

1,469

1,375

6.8%

1.3%

5.5%


2,972

2,829

5.1%

1.5%

3.6%

DIABETES CARE












US

333

313

6.4%

6.4%

-


644

603

6.8%

6.8%

-

Intl

348

303

14.9%

4.1%

10.8%


674

610

10.5%

4.5%

6.0%

WW

681

616

10.6%

5.3%

5.3%


1,318

1,213

8.7%

5.7%

3.0%

ETHICON












US

540

509

6.1%

6.1%

-


1,056

1,019

3.6%

3.6%

-

Intl

717

623

15.1%

4.2%

10.9%


1,394

1,260

10.6%

3.7%

6.9%

WW

1,257

1,132

11.0%

5.0%

6.0%


2,450

2,279

7.5%

3.7%

3.8%

ETHICON ENDO-SURGERY












US

490

507

-3.4%

-3.4%

-


961

990

-2.9%

-2.9%

-

Intl

805

689

16.8%

5.5%

11.3%


1,555

1,374

13.2%

5.8%

7.4%

WW

1,295

1,196

8.3%

1.8%

6.5%


2,516

2,364

6.4%

2.1%

4.3%

ORTHO-CLINICAL DIAGNOSTICS












US

281

264

6.4%

6.4%

-


546

552

-1.1%

-1.1%

-

Intl

269

230

17.0%

6.4%

10.6%


525

467

12.4%

5.2%

7.2%

WW

550

494

11.3%

6.4%

4.9%


1,071

1,019

5.1%

1.8%

3.3%

VISION CARE












US

245

232

5.6%

5.6%

-


501

481

4.2%

4.2%

-

Intl

487

430

13.3%

2.1%

11.2%


953

845

12.8%

4.0%

8.8%

WW

732

662

10.6%

3.3%

7.3%


1,454

1,326

9.7%

4.1%

5.6%

TOTAL MEDICAL DEVICES AND DIAGNOSTICS












US

2,869

2,865

0.1%

0.1%

-


5,741

5,751

-0.2%

-0.2%

-

Intl

3,702

3,265

13.4%

2.2%

11.2%


7,262

6,606

9.9%

2.5%

7.4%

WW

6,571

6,130

7.2%

1.3%

5.9%


13,003

12,357

5.2%

1.3%

3.9%













* Percentage greater than 100%

(1) Operational growth excludes the effect of currency

(2) Select areas (unaudited)

(3) Reported in U.S. sales

(4) Prior year amounts have been reclassified to conform to current year product disclosure

(5) Previously Cordis



Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Measures



Second Quarter


% Incr. /



Six Months YTD


% Incr. /


(Dollars in Millions Except Per Share Data)

2011


2010


(Decr.)



2011


2010


(Decr.)
















Earnings before provision for taxes on income - as reported

$           3,422


4,220


(18.9)

%


$         7,932


10,500


(24.5)

%















Restructuring - Cordis

676


-





676


-


















Net Litigation Settlements Loss (Gain)/Other*

315


157





661


(1,340)


















Earnings before provision for taxes on income - as adjusted

$           4,413


4,377


0.8

%


$         9,269


9,160


1.2

%















Net Earnings - as reported

$           2,776


3,449


(19.5)

%


$         6,252


7,975


(21.6)

%















Restructuring - Cordis

549


-





549


-


















Net Litigation Settlements Loss (Gain)/Other*

223


(67)





494


(977)


















Net Earnings - as adjusted

$           3,548


3,382


4.9

%


$         7,295


6,998


4.2

%















Diluted Net earnings per share - as reported

$             1.00


1.23


(18.7)

%


$           2.25


2.85


(21.1)

%















Restructuring - Cordis

0.20


-





0.20


-


















Net Litigation Settlements Loss (Gain)/Other*

0.08


(0.02)





0.18


(0.35)


















Diluted Net earnings per share - as adjusted

$             1.28


1.21


5.8

%


$           2.63


2.50


5.2

%





























* In 2011, Other includes additional DePuy ASRTM Hip recall costs and a mark-to-market gain associated with a currency option related to the planned acquisition of Synthes.


The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of earnings before provision for taxes on income, net earnings and diluted net earnings per share that excludes special items in order to evaluate ongoing business operations.



SOURCE Johnson & Johnson

News Provided by Acquire Media


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