April 16, 2013

Johnson & Johnson Reports 2013 First-Quarter Results:

Sales of $17.5 Billion Increased 8.5% Versus 2012 First Quarter; First-Quarter EPS was $1.22 Excluding Special Items, 2013 First-Quarter EPS of $1.44 Increased 5.1%*

NEW BRUNSWICK, N.J., April 16, 2013 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ)  today announced sales of $17.5 billion for the first quarter of 2013, an increase of 8.5% as compared to the first quarter of 2012.  Operational results increased 9.8% and the negative impact of currency was 1.3%.  Domestic sales increased 11.2%.  International sales increased 6.3%, reflecting operational growth of 8.7% and a negative currency impact of 2.4%.  Sales included the impact of the acquisition of Synthes, Inc., net of the divestiture of the DePuy trauma business, which contributed 5.7% to worldwide operational sales growth.

Net earnings and diluted earnings per share for the first quarter of 2013 were $3.5 billion and $1.22, respectively.  First quarter 2013 net earnings included after-tax special items of approximately $0.6 billion, primarily related to litigation expenses, as well as integration and transaction costs related to the acquisition of Synthes, Inc.  First quarter 2012 net earnings included a gain from an after-tax special item of approximately $0.1 billion as shown in the accompanying reconciliation of non-GAAP financial measures.  Excluding these special items, net earnings for the current quarter were $4.1 billion and diluted earnings per share were $1.44, representing increases of 8.0% and 5.1%, respectively, as compared to the same period in 2012.*  

"We delivered solid first quarter results led by the success of many of our recently launched pharmaceutical products and the addition of Synthes to our orthopaedics business.  Also of note is the growth in our over-the-counter medicines business as we continue to make progress in returning a reliable supply of high quality products to our customers," said Alex Gorsky, Chairman and Chief Executive Officer.  "Our investments to advance our pipelines and expand our global presence, along with the outstanding efforts of our talented people, will enable us to continue to deliver sustainable growth and meaningful innovations to patients and customers around the world."

The Company confirmed its earnings guidance for full-year 2013 of $5.35 - $5.45 per share.  The Company's guidance excludes the impact of special items.

Worldwide Consumer sales of $3.7 billion for the first quarter represented an increase of 2.2% versus the prior year consisting of an operational increase of 3.3% and a negative impact from currency of 1.1%.  Domestic sales increased 2.4%.  International sales increased 2.1%, which reflected an operational increase of 3.8% and a negative currency impact of 1.7%.

Positive contributors to operational results were TYLENOL® and MOTRIN® analgesics and upper respiratory over-the-counter medicines; baby care products; LISTERINE® mouthwash; and NEUTROGENA® skin care products. During the quarter, Johnson & Johnson (China) Investment Co., Ltd. completed the acquisition of Shanghai Elsker Mother & Baby Co., Ltd, a well regarded baby care company in China, known for its position in the naturals segment.

Worldwide Pharmaceutical sales of $6.8 billion for the first quarter represented an increase of 10.4% versus the prior year with operational growth of 11.4% and a negative impact from currency of 1.0%.  Domestic sales increased 14.7%.  International sales increased 6.1% which reflected an operational increase of 8.1% and a negative currency impact of 2.0%. 

Primary contributors to operational sales growth were INVEGA® SUSTENNA®/XEPLION® (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the acute and maintenance treatment of schizophrenia in adults; STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; SIMPONI® (golimumab), a biologic approved to treat adults with moderate-to-severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; REMICADE® (infliximab), a biologic approved for the treatment of a number of immune-mediated-inflammatory diseases; PREZISTA® (darunavir), a treatment for HIV; and sales of recently launched products.

The strong sales results of recently launched products included ZYTIGA® (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer; XARELTO® (rivaroxaban), an oral anticoagulant; and INCIVO® (telaprevir), a direct-acting antiviral protease inhibitor, for the treatment of genotype-1 chronic hepatitis C virus.

During the quarter, the U.S. Food and Drug Administration (FDA) approved INVOKANA™ (canagliflozin) for the treatment of adults with type 2 diabetes. INVOKANA™ is the first in a new class of medications called sodium glucose co-transporter 2 (SGLT2) inhibitors to be approved in the United States.  In addition, a Marketing Authorization Application was submitted to the European Medicines Agency seeking approval for a fixed-dose therapy combining canagliflozin and immediate release metformin to treat adult patients with type 2 diabetes.

Also in the quarter, a New Drug Application was submitted to the FDA, as well as regulatory health authorities in Japan, seeking approval for simeprevir (TMC435), an investigational NS3/4A protease inhibitor, for the treatment of genotype 1 chronic hepatitis C in adult patients.  In addition, the FDA granted Breakthrough Therapy Designations for the investigational oral agent ibrutinib as a monotherapy for three B-cell malignancies: in patients with relapsed or refractory mantle cell lymphoma who have received prior therapy; in patients with Waldenstrom's macroglobulinemia; and in patients with chronic lymphocytic leukemia or small lymphocytic lymphoma with deletion of the short arm of chromosome 17. Ibrutinib is jointly being developed by Janssen Research & Development, LLC and Pharmacyclics Inc.  

Worldwide Medical Devices and Diagnostics sales of $7.1 billion for the first quarter represented an increase of 10.2% versus the prior year consisting of an operational increase of 11.9% and a negative currency impact of 1.7%.  Domestic sales increased 11.4%.  International sales increased 9.1%, which reflected an operational increase of 12.2% and a negative currency impact of 3.1%.  Sales included the impact of the acquisition of Synthes, Inc., which contributed approximately 14%, 17% and 12% to worldwide, domestic and international operational sales growth, respectively, net of the divestiture of the DePuy trauma business.

Primary contributors to operational growth were sales from the acquisition of Synthes, Inc., in the Orthopaedics business; Biosense Webster's electrophysiology and Cordis' endovascular products in the Cardiovascular Care business; Vision Care's 1-Day ACUVUE® TRUEYE and 1-Day ACUVUE® MOIST® disposable contact lenses; biosurgical and international sales of energy products in the Specialty Surgery business; and the donor screening and clinical laboratories products in the Diagnostics business in the U.S.  

During the quarter, 510(k) clearance was received from the FDA for the ENSEAL® G2 Articulating Tissue Sealer, the first articulating advanced energy device designed to allow surgeons to take a perpendicular approach to seal vessels, as well as the ENSEAL® G2 Cordless Tissue Sealer Device, a first of its kind self-contained device that includes both a generator and power source.

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 128,000 employees at more than 275 Johnson & Johnson operating 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.

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, reconciliation of non-GAAP financial measures, and sales of key products/franchises.  Additional information on Johnson & Johnson, including a pharmaceutical pipeline of selected compounds in late stage development can be found on the Company's website at www.jnj.com.

NOTE TO INVESTORS

(This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to rely on these forward-looking statements. 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, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; challenges to patents; significant adverse litigation or government action; impact of business combinations; financial distress and bankruptcies experienced by significant customers and suppliers; changes to governmental laws and regulations and domestic and foreign health care reforms; trends toward health care cost containment; increased scrutiny of the health care industry by government agencies; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and sovereign risk; disruptions due to natural disasters; manufacturing difficulties or delays; complex global supply chains with increasing regulatory requirements; and product efficacy or safety concerns resulting in product recalls or regulatory action. 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 December 30, 2012.  Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.investor.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


2013


2012


Total


Operations


Currency

Sales to customers by










segment of business




















Consumer










    U.S.

$      1,348


1,316


2.4

%

2.4


-

    International

2,327


2,279


2.1


3.8


(1.7)


3,675


3,595


2.2


3.3


(1.1)











Pharmaceutical










    U.S.

3,471


3,026


14.7


14.7


-

    International

3,297


3,107


6.1


8.1


(2.0)


6,768


6,133


10.4


11.4


(1.0)











Med Devices & Diagnostics










    U.S.

3,206


2,877


11.4


11.4


-

    International

3,856


3,534


9.1


12.2


(3.1)


7,062


6,411


10.2


11.9


(1.7)











U.S.

8,025


7,219


11.2


11.2


-

International

9,480


8,920


6.3


8.7


(2.4)

Worldwide

$    17,505


16,139


8.5

%

9.8


(1.3)

 

 

Johnson & Johnson and Subsidiaries








Supplementary Sales Data




















(Unaudited; Dollars in Millions)

FIRST QUARTER






Percent Change


2013


2012


Total


Operations


Currency

Sales to customers by










geographic area




















U.S.

$     8,025


7,219


11.2

%

11.2


-











Europe

4,481


4,194


6.8


6.2


0.6

Western Hemisphere excluding U.S.

1,783


1,714


4.0


9.1


(5.1)

Asia-Pacific, Africa

3,216


3,012


6.8


11.8


(5.0)

International

9,480


8,920


6.3


8.7


(2.4)











Worldwide

$   17,505


16,139


8.5

%

9.8


(1.3)

 

 

Johnson & Johnson and Subsidiaries








Condensed Consolidated Statement of Earnings 















(Unaudited; in Millions Except Per Share Figures)

FIRST QUARTER












2013


2012


Percent




Percent



Percent

Increase


Amount


to Sales

Amount


to Sales

(Decrease)

Sales to customers

$ 17,505


100.0


$ 16,139


100.0


8.5

Cost of products sold

5,554


31.7


4,915


30.4


13.0

Selling, marketing and administrative expenses

5,223


29.8


5,015


31.1


4.1

Research and development expense

1,784


10.2


1,645


10.2


8.4

In-process research and development

64


0.4


-


-



Interest (income) expense, net

104


0.6


130


0.8



Other (income) expense, net

515


3.0


(611)


(3.8)



Earnings before provision for taxes on income

4,261


24.3


5,045


31.3


(15.5)

Provision for taxes on income

764


4.3


1,135


7.1


(32.7)

Net earnings

3,497


20.0


3,910


24.2


(10.6)











Net earnings per share (Diluted)

$     1.22




$     1.41




(13.5)











Average shares outstanding (Diluted)

2,858.8




2,774.9















Effective tax rate

17.9

%



22.5

%














Adjusted earnings before provision for taxes and net earnings (1)










     Earnings before provision for taxes on income

$   5,070


29.0


$   4,928


30.5


2.9

     Net earnings

$   4,107


23.5


$   3,804


23.6


8.0

     Net earnings per share (Diluted)

$     1.44




$     1.37




5.1

     Effective tax rate

19.0

%



22.8

%














(1)See Reconciliation of Non-GAAP Financial Measures.






 

 

Johnson & Johnson and Subsidiaries








Reconciliation of Non-GAAP Financial Measures

















First Quarter


% Incr. /



(Dollars in Millions Except Per Share Data)

2013


2012


(Decr.)











Earnings before provision for taxes on income - as reported

$   4,261


5,045


(15.5)

%










Litigation expenses

529


-













Synthes integration/transaction costs and currency related

258


(117)













In-process research and development

64


-













Other

(42)


-













Earnings before provision for taxes on income - as adjusted

$   5,070


4,928


2.9

%










Net Earnings - as reported

$   3,497


3,910


(10.6)

%










Litigation expenses

391


-













Synthes integration/transaction costs and currency related

183


(106)













In-process research and development

42


-













Other

(6)


-













Net Earnings - as adjusted 

$   4,107


3,804


8.0

%










Diluted Net Earnings per share - as reported

$    1.22


1.41


(13.5)

%










Litigation expenses

0.14


-













Synthes integration/transaction costs and currency related

0.06


(0.04)













In-process research and development

0.02


-













Other

-


-













Diluted Net Earnings per share - as adjusted 

$    1.44


1.37


5.1

%


















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.







 

 



 

REPORTED SALES vs. PRIOR PERIOD ($MM)


FIRST QUARTER






% Change



2013


2012

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2) 








BABY CARE








US


$      103


99

4.0%

4.0%

-

Intl


461


441

4.5%

7.7%

-3.2%

WW


564


540

4.4%

7.0%

-2.6%

ORAL CARE








US


158


155

1.9%

1.9%

-

Intl


245


232

5.6%

7.3%

-1.7%

WW


403


387

4.1%

5.1%

-1.0%

OTC/NUTRITIONALS








US


436


381

14.4%

14.4%

-

Intl


747


723

3.3%

3.9%

-0.6%

WW


1,183


1,104

7.2%

7.6%

-0.4%

SKIN CARE








US


453


453

0.0%

0.0%

-

Intl


449


454

-1.1%

-0.4%

-0.7%

WW


902


907

-0.6%

-0.2%

-0.4%

WOMEN'S HEALTH








US


81


93

-12.9%

-12.9%

-

Intl


320


316

1.3%

4.9%

-3.6%

WW


401


409

-2.0%

0.8%

-2.8%

WOUND CARE/OTHER








US


117


135

-13.3%

-13.3%

-

Intl


105


113

-7.1%

-6.1%

-1.0%

WW


222


248

-10.5%

-10.0%

-0.5%









TOTAL CONSUMER








US


1,348


1,316

2.4%

2.4%

-

Intl


2,327


2,279

2.1%

3.8%

-1.7%

WW


$   3,675


3,595

2.2%

3.3%

-1.1%

















See footnotes at end of schedule


































 

REPORTED SALES vs. PRIOR PERIOD ($MM)


FIRST QUARTER






% Change



2013


2012

Reported

Operational (1)

Currency

PHARMACEUTICAL SEGMENT (2) (4)








IMMUNOLOGY








US


$   1,639


1,453

12.8%

12.8%

-

Intl


565


442

27.8%

30.1%

-2.3%

WW


2,204


1,895

16.3%

16.8%

-0.5%

     REMICADE








     US 


970


882

10.0%

10.0%

-

     US Exports (3)


349


378

-7.7%

-7.7%

-

     Intl


281


261

7.7%

9.5%

-1.8%

     WW


1,600


1,521

5.2%

5.5%

-0.3%

     SIMPONI








     US


94


64

46.9%

46.9%

-

     Intl


143


52

*

*

-3.3%

     WW


237


116

*

*

-2.0%

     STELARA








     US


226


129

75.2%

75.2%

-

     Intl


120


92

30.4%

31.2%

-0.8%

     WW


346


221

56.6%

57.0%

-0.4%

     OTHER IMMUNOLOGY








     US


-


-

-

-

-

     Intl


21


37

-43.2%

-42.9%

-0.3%

     WW


21


37

-43.2%

-42.9%

-0.3%

INFECTIOUS DISEASES








US


238


242

-1.7%

-1.7%

-

Intl


577


513

12.5%

13.5%

-1.0%

WW


815


755

7.9%

8.6%

-0.7%

     INCIVO








     US


-


-

-

-

-

     Intl


162


132

22.7%

24.9%

-2.2%

     WW


162


132

22.7%

24.9%

-2.2%

     INTELENCE








     US


47


43

9.3%

9.3%

-

     Intl


42


37

13.5%

14.1%

-0.6%

     WW


89


80

11.3%

11.6%

-0.3%

     PREZISTA








     US


167


160

4.4%

4.4%

-

     Intl


200


164

22.0%

22.3%

-0.3%

     WW


367


324

13.3%

13.5%

-0.2%

     OTHER INFECTIOUS DISEASES








     US


24


39

-38.5%

-38.5%

-

     Intl


173


180

-3.9%

-3.0%

-0.9%

     WW


197


219

-10.0%

-9.3%

-0.7%



















 

REPORTED SALES vs. PRIOR PERIOD ($MM)


FIRST QUARTER






% Change



2013


2012

Reported

Operational (1)

Currency









NEUROSCIENCE








US


746


674

10.7%

10.7%

-

Intl


998


973

2.6%

5.6%

-3.0%

WW


1,744


1,647

5.9%

7.7%

-1.8%

     CONCERTA/METHYLPHENIDATE








     US


139


197

-29.4%

-29.4%

-

     Intl


117


111

5.4%

6.8%

-1.4%

     WW


256


308

-16.9%

-16.4%

-0.5%

     INVEGA








     US


71


69

2.9%

2.9%

-

     Intl


61


52

17.3%

22.0%

-4.7%

     WW


132


121

9.1%

11.1%

-2.0%

     INVEGA SUSTENNA/ XEPLION








     US


164


100

64.0%

64.0%

-

     Intl


120


61

96.7%

96.0%

0.7%

     WW


284


161

76.4%

76.1%

0.3%

     RISPERDAL CONSTA








     US


106


113

-6.2%

-6.2%

-

     Intl


229


248

-7.7%

-6.0%

-1.7%

     WW


335


361

-7.2%

-6.0%

-1.2%

     OTHER NEUROSCIENCE








     US


266


195

36.4%

36.4%

-

     Intl


471


501

-6.0%

-1.8%

-4.2%

     WW


737


696

5.9%

8.9%

-3.0%

ONCOLOGY








US


199


107

86.0%

86.0%

-

Intl


595


489

21.7%

23.9%

-2.2%

WW


794


596

33.2%

35.0%

-1.8%

     VELCADE








     US


-


-

-

-

-

     Intl


353


353

0.0%

2.5%

-2.5%

     WW


353


353

0.0%

2.5%

-2.5%

     ZYTIGA








     US


161


100

61.0%

61.0%

-

     Intl


183


100

83.0%

83.4%

-0.4%

     WW


344


200

72.0%

72.2%

-0.2%

     OTHER ONCOLOGY








     US


38


7

*

*

-

     Intl


59


36

63.9%

68.7%

-4.8%

     WW


97


43

*

*

-4.0%



































 

REPORTED SALES vs. PRIOR PERIOD ($MM)


FIRST QUARTER






% Change



2013


2012

Reported

Operational (1)

Currency

TOTAL OTHER








US


649


550

18.0%

18.0%

-

Intl


562


690

-18.6%

-17.5%

-1.1%

WW


1,211


1,240

-2.3%

-1.7%

-0.6%

     ACIPHEX/PARIET








     US


103


96

7.3%

7.3%

-

     Intl


49


126

-61.1%

-60.5%

-0.6%

     WW


152


222

-31.5%

-31.2%

-0.3%

     PROCRIT/EPREX








     US


233


204

14.2%

14.2%

-

     Intl


145


172

-15.7%

-15.8%

0.1%

     WW


378


376

0.5%

0.5%

0.0%

     XARELTO








     US


158


27

*   

*  

-

     Intl


-


-

-

-

-

     WW


158


27

*   

*  

-

     OTHER








     US


155


223

-30.5%

-30.5%

-

     Intl


368


392

-6.1%

-4.4%

-1.7%

     WW


523


615

-15.0%

-13.9%

-1.1%









TOTAL PHARMACEUTICAL








US


3,471


3,026

14.7%

14.7%

-

Intl


3,297


3,107

6.1%

8.1%

-2.0%

WW


$   6,768


6,133

10.4%

11.4%

-1.0%

















Supplemental Sales Information










2012



Q1


Q2

Q3

Q4

Full Year

INCIVO








US


-


-

-

-

-

Intl


132


102

71

138

443

WW


132


102

71

138

443









XARELTO








US


27


49

68

95

239

Intl


-


-

-

-

-

WW


27


49

68

95

239









See footnotes at end of schedule


























 

REPORTED SALES vs. PRIOR PERIOD ($MM)


FIRST QUARTER






% Change



2013


2012

Reported

Operational (1)

Currency

MEDICAL DEVICES AND DIAGNOSTICS (2)








CARDIOVASCULAR CARE








US


$      198


176

12.5%

12.5%

-

Intl


315


306

2.9%

6.2%

-3.3%

WW


513


482

6.4%

8.5%

-2.1%

DIABETES CARE








US


283


352

-19.6%

-19.6%

-

Intl


317


318

-0.3%

0.9%

-1.2%

WW


600


670

-10.4%

-9.8%

-0.6%

DIAGNOSTICS








US


248


253

-2.0%

-2.0%

-

Intl


229


259

-11.6%

-7.9%

-3.7%

WW


477


512

-6.8%

-4.9%

-1.9%

INFECTION PREVENTION/OTHER








US


85


116

-26.7%

-26.7%

-

Intl


127


128

-0.8%

4.1%

-4.9%

WW


212


244

-13.1%

-10.5%

-2.6%

ORTHOPAEDICS








US 


1,261


783

61.0%

61.0%

-

Intl


1,124


710

58.3%

60.5%

-2.2%

WW


2,385


1,493

59.7%

60.7%

-1.0%

SPECIALTY SURGERY








US


319


327

-2.4%

-2.4%

-

Intl


308


301

2.3%

4.7%

-2.4%

WW


627


628

-0.2%

1.0%

-1.2%

SURGICAL CARE 








US


531


593

-10.5%

-10.5%

-

Intl


977


1,032

-5.3%

-2.4%

-2.9%

WW


1,508


1,625

-7.2%

-5.4%

-1.8%

VISION CARE








US


281


277

1.4%

1.4%

-

Intl


459


480

-4.4%

1.6%

-6.0%

WW


740


757

-2.2%

1.6%

-3.8%









TOTAL MEDICAL DEVICES AND DIAGNOSTICS








US


3,206


2,877

11.4%

11.4%

-

Intl


3,856


3,534

9.1%

12.2%

-3.1%

WW


$   7,062


6,411

10.2%

11.9%

-1.7%









* Percentage greater than 100%








(1) Operational growth excludes the effect of currency




(2) Select areas (unaudited)








(3) Reported as U.S. sales








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

 

 

SOURCE Johnson & Johnson

News Provided by Acquire Media


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