Summary
Johnson & Johnson (JNJ) reported a 7.2% decrease in worldwide sales for the first quarter of 2009, reaching $15.0 billion compared to $16.2 billion in the prior year's first quarter. This decline was significantly impacted by a 6.0% negative currency effect, with operational sales only down by 1.2%. The company saw mixed performance across its segments: Consumer sales decreased by 8.7%, Pharmaceutical sales were down 10.1% (largely due to the loss of market exclusivity for RISPERDAL® oral), and Medical Devices & Diagnostics sales declined by 2.9%. Despite the sales dip, the company's net earnings remained strong at $3.5 billion, with earnings per share unchanged at $1.26 on a diluted basis. JNJ also continued its commitment to returning capital to shareholders, increasing its quarterly dividend by 6.5% and repurchasing stock. The company faced significant headwinds from foreign currency fluctuations and the ongoing impact of patent expirations and generic competition, particularly within the Pharmaceutical segment. However, operational efficiencies and cost containment efforts helped to improve operating profit margins in all three segments. JNJ's liquidity position remained robust, with cash and cash equivalents increasing to $12.6 billion, supported by strong operating cash flows.
Financial Highlights
31 data points| Revenue | $15.03B |
| Cost of Revenue | $4.25B |
| Gross Profit | $10.78B |
| SG&A Expenses | $4.61B |
| Interest Expense | $106.00M |
| Net Income | $3.51B |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 2.77B |
| Shares Outstanding (Diluted) | 2.79B |
Key Highlights
- 1Worldwide sales declined 7.2% to $15.0 billion, heavily influenced by a 6.0% negative impact from currency fluctuations.
- 2Net earnings were $3.5 billion, resulting in diluted earnings per share of $1.26, flat year-over-year.
- 3Consumer segment sales decreased by 8.7%, Pharmaceutical segment sales by 10.1%, and Medical Devices & Diagnostics segment sales by 2.9%.
- 4Significant revenue decline in the Pharmaceutical segment for RISPERDAL® oral due to loss of market exclusivity, and for PROCRIT®/EPREX® due to market contraction and safety data.
- 5Acquisition of Mentor Corporation for $1.1 billion in the first quarter of 2009, primarily in the Medical Devices & Diagnostics segment.
- 6Company increased its quarterly dividend by 6.5% to $0.490 per share, marking the 47th consecutive year of dividend increases.
- 7Operating profit margins improved across all three segments (Consumer, Pharmaceutical, Medical Devices & Diagnostics) due to cost containment and efficiencies.