Summary
Johnson & Johnson (JNJ) reported its financial results for the quarter ended June 28, 2009, and the first six months of the year. Overall sales for the six months decreased by 7.3% to $30.3 billion, impacted by a 6.0% negative currency translation effect. The company saw a decrease in sales across all major segments: Consumer (down 6.6%), Pharmaceutical (down 11.7%), and Medical Devices & Diagnostics (down 3.0%), with the Pharmaceutical segment experiencing the most significant decline, largely due to patent expirations and generic competition for key products like Risperdal and Topamax. Despite the sales decline, the company demonstrated resilience in its balance sheet, with total assets increasing to $87.4 billion from $84.9 billion at the end of 2008. Net earnings for the six months were $6.7 billion, a slight decrease from $6.9 billion in the prior year. Diluted EPS for the six months was $2.41, down from $2.43 in the same period last year. The company continued its commitment to shareholder returns by declaring an increased cash dividend, reflecting its stable operational cash flow generation.
Financial Highlights
52 data points| Revenue | $15.24B |
| Cost of Revenue | $4.45B |
| Gross Profit | $10.79B |
| SG&A Expenses | $4.80B |
| Interest Expense | $110.00M |
| Net Income | $3.21B |
| EPS (Basic) | $1.16 |
| EPS (Diluted) | $1.15 |
| Shares Outstanding (Basic) | 2.76B |
| Shares Outstanding (Diluted) | 2.78B |
Key Highlights
- 1Worldwide sales for the six months ended June 28, 2009, decreased by 7.3% to $30.3 billion, heavily influenced by a 6.0% negative currency impact.
- 2Pharmaceutical segment sales saw a substantial decline of 11.7% for the six months, largely attributed to the loss of market exclusivity for key products such as Risperdal and Topamax.
- 3Consumer segment sales decreased by 6.6% for the six months, with notable impacts from competitive pressures in OTC Pharmaceuticals and Nutritionals.
- 4Medical Devices & Diagnostics segment sales experienced a 3.0% decrease for the six months, with the Cordis business showing a significant decline due to increased global competition.
- 5Net earnings for the first six months of 2009 were $6.7 billion, a slight decrease from $6.9 billion in the prior year. Diluted EPS for the six months was $2.41, down from $2.43.
- 6The company declared an increased cash dividend of $0.490 per share for the quarter, marking the 47th consecutive year of dividend increases.
- 7Total assets grew to $87.4 billion as of June 28, 2009, from $84.9 billion as of December 28, 2008, primarily driven by increases in cash and cash equivalents, and intangible assets and goodwill.