10-Q/APeriod: Q3 FY2006

JOHNSON & JOHNSON Quarterly Report (Amendment) for Q3 Ended Jul 2, 2006

Filed August 8, 2006For Securities:JNJ

Summary

Johnson & Johnson reported solid financial results for the fiscal second quarter and first six months ended July 2, 2006. Sales increased by 4.7% to $13.4 billion for the quarter and 3.0% to $26.4 billion for the six-month period, driven by strong performance across its Pharmaceutical and Medical Devices & Diagnostics segments, particularly in the U.S. and Western Hemisphere markets. Net earnings for the quarter rose to $2.8 billion ($0.96 per share) from $2.6 billion ($0.87 per share) in the prior year, reflecting overall operational strength. The company also announced a significant agreement to acquire Pfizer's Consumer Healthcare business for $16.6 billion, signaling a strategic move to expand its consumer offerings. The company continues to return value to shareholders through increasing dividends and an active share repurchase program.

Key Highlights

  • 1Worldwide sales increased by 4.7% to $13.4 billion in Q2 2006 and 3.0% to $26.4 billion in the first six months of 2006 compared to the prior year periods.
  • 2Net earnings for Q2 2006 were $2.8 billion ($0.96 per share), up from $2.6 billion ($0.87 per share) in Q2 2005.
  • 3The company announced a definitive agreement to acquire Pfizer's Consumer Healthcare business for $16.6 billion.
  • 4The Pharmaceutical segment showed robust growth, driven by strong sales of RISPERDAL/RISPERDAL CONSTA, REMICADE, and TOPAMAX.
  • 5The Medical Devices & Diagnostics segment also performed well, with the CYPHER Sirolimus-eluting Stent being a key growth driver.
  • 6Johnson & Johnson declared a regular quarterly cash dividend of $0.375 per share, a 13.6% increase, marking the 44th consecutive year of dividend increases.
  • 7The company repurchased approximately 43 million shares of common stock during the second quarter of 2006.

Frequently Asked Questions

For the fiscal second quarter ended July 2, 2006, Johnson & Johnson reported worldwide sales of $13.4 billion, representing a 4.7% increase compared to $12.8 billion in the same period of 2005. This growth was driven by strong operational performance across its key segments.

Johnson & Johnson announced a definitive agreement to acquire Pfizer Inc.'s Consumer Healthcare business for $16.6 billion in cash, a move expected to close by the end of 2006. This acquisition will significantly enhance their consumer product portfolio.

The company continues to prioritize returning capital to shareholders. It declared a regular cash dividend of $0.375 per share, a 13.6% increase over the previous rate. Additionally, Johnson & Johnson repurchased approximately 43 million shares of its common stock during the second quarter of 2006 under its ongoing stock repurchase program.

The Pharmaceutical segment's sales growth was primarily driven by strong performance in key products such as RISPERDAL/RISPERDAL CONSTA (risperidone), REMICADE (infliximab), and TOPAMAX (topiramate). This segment saw a 3.2% increase in sales for the quarter.