Summary
Johnson & Johnson reported modest top-line performance for the first quarter of 2012, with total sales remaining relatively flat year-over-year at $16.1 billion, a slight decrease of 0.2%. This was driven by operational growth of 1.0%, which was offset by a negative currency impact of 1.2%. The company demonstrated improved profitability, with net earnings increasing to $3.91 billion from $3.48 billion in the prior year's first quarter. Diluted earnings per share also saw a healthy increase to $1.41 from $1.25. The company's diverse business segments showed varied performance. While the Pharmaceutical segment experienced robust operational growth, particularly in Immunology, the Consumer segment saw a slight decline, partly impacted by ongoing remediation efforts related to manufacturing facilities. The Medical Devices and Diagnostics segment remained largely stable. Cash flow from operations was strong, reflecting solid earnings and efficient management of working capital, enabling continued investment in operations and return of capital to shareholders through dividends.
Financial Highlights
54 data points| Revenue | $16.14B |
| Cost of Revenue | $4.92B |
| Gross Profit | $11.22B |
| SG&A Expenses | $5.01B |
| Operating Income | $5.13B |
| Interest Expense | $147.00M |
| Net Income | $3.91B |
| EPS (Basic) | $1.43 |
| EPS (Diluted) | $1.41 |
| Shares Outstanding (Basic) | 2.74B |
| Shares Outstanding (Diluted) | 2.77B |
Key Highlights
- 1Total sales for the first quarter of 2012 were $16.1 billion, a slight decrease of 0.2% year-over-year, with operational growth of 1.0% offset by a 1.2% negative currency impact.
- 2Net earnings increased to $3.91 billion ($1.41 diluted EPS) from $3.48 billion ($1.25 diluted EPS) in the prior year's first quarter, indicating improved profitability.
- 3The Pharmaceutical segment showed strong operational growth of 2.6%, driven by the Immunology and Oncology therapeutic areas.
- 4The Consumer segment experienced an operational decline of 0.6%, impacted by ongoing remediation costs and supply constraints at manufacturing facilities.
- 5Cash flow from operating activities was $2.8 billion, demonstrating the company's ability to generate cash from its core operations.
- 6Johnson & Johnson continued to return capital to shareholders, declaring a cash dividend of $0.61 per share for the upcoming quarter.
- 7The company is progressing with its planned acquisition of Synthes, Inc., which is expected to close in the second quarter of 2012, and is also planning to divest its DePuy Orthopaedics Inc.'s trauma business.