Summary
Johnson & Johnson reported a strong performance in the third quarter of 2008, demonstrating robust sales growth across most segments, driven by both operational improvements and favorable currency fluctuations. The company's worldwide sales increased by 6.4% to $15.9 billion for the quarter, with international sales showing particularly strong growth, up 13.1%. This growth was fueled by impressive performance in the Consumer segment, which saw a 13.1% increase in sales, and the Medical Devices & Diagnostics segment, up 8.8%. The Pharmaceutical segment experienced modest overall growth of 0.2%, impacted by declines in some key products due to generic competition, though this was partially offset by strong performance in others like REMICADE® and CONCERTA®. Financially, the company maintained healthy profitability, with Net Earnings rising to $3.31 billion for the quarter, a significant increase from $2.55 billion in the prior year. Earnings per share also saw a substantial jump. The company's balance sheet strengthened, with cash and cash equivalents increasing significantly to $14.0 billion from $7.8 billion a year prior, largely due to strong operating cash flows. The company continued its commitment to returning value to shareholders through dividends and share repurchases, demonstrating financial resilience amidst a challenging economic environment.
Financial Highlights
31 data points| Revenue | $15.92B |
| Cost of Revenue | $4.77B |
| Gross Profit | $11.15B |
| SG&A Expenses | $5.20B |
| Interest Expense | $122.00M |
| Net Income | $3.31B |
| EPS (Basic) | $1.19 |
| EPS (Diluted) | $1.17 |
| Shares Outstanding (Basic) | 2.79B |
| Shares Outstanding (Diluted) | 2.83B |
Key Highlights
- 1Worldwide sales increased 6.4% to $15.9 billion for the third quarter of 2008, with international sales up 13.1%.
- 2Net earnings rose to $3.31 billion ($1.17 per diluted share) for the third quarter of 2008, compared to $2.55 billion ($0.88 per diluted share) in the prior year.
- 3The Consumer segment showed strong sales growth of 13.1% in the third quarter, driven by OTC Pharmaceuticals, Skin Care, and Baby Care franchises.
- 4The Medical Devices & Diagnostics segment reported sales growth of 8.8% in the third quarter, with notable performance from DePuy and Ethicon Endo-Surgery.
- 5The Pharmaceutical segment experienced a modest 0.2% sales increase for the quarter, with key products like REMICADE® and CONCERTA® showing strong growth, partially offsetting declines in RISPERDAL® and LEVAQUIN® due to generic competition.
- 6Cash and cash equivalents significantly increased to $14.0 billion as of September 28, 2008, up from $7.8 billion a year prior, indicating strong cash generation from operations.
- 7The company paid $3.75 billion in dividends and repurchased $5.77 billion of its stock during the first nine months of 2008.