Summary
Johnson & Johnson reported strong results for the second quarter and first six months of 2013, with worldwide sales increasing by 8.5% year-over-year to $17.9 billion for the quarter and $35.4 billion for the six-month period. This growth was driven by robust operational increases across all business segments, particularly in Pharmaceuticals and Medical Devices & Diagnostics. Net earnings for the second quarter significantly increased to $3.83 billion, or $1.33 per diluted share, compared to $1.41 billion, or $0.50 per diluted share, in the prior year period, reflecting improved profitability and a favorable equity investment transaction. The company demonstrated healthy cash flow from operations, amounting to $7.3 billion for the six-month period, supporting its investments in growth initiatives and returning capital to shareholders through dividends. Despite ongoing litigation and regulatory matters, management expressed confidence that the ultimate resolution of these issues will not materially adversely affect the company's financial position.
Financial Highlights
54 data points| Revenue | $17.88B |
| Cost of Revenue | $5.49B |
| Gross Profit | $12.39B |
| SG&A Expenses | $5.38B |
| Operating Income | $5.02B |
| Interest Expense | $118.00M |
| Net Income | $3.83B |
| EPS (Basic) | $1.36 |
| EPS (Diluted) | $1.33 |
| Shares Outstanding (Basic) | 2.81B |
| Shares Outstanding (Diluted) | 2.89B |
Key Highlights
- 1Worldwide sales for the second quarter of 2013 increased by 8.5% to $17.9 billion compared to the prior year, driven by strong operational growth.
- 2Net earnings for the second quarter of 2013 significantly increased to $3.83 billion, or $1.33 per diluted share, up from $1.41 billion, or $0.50 per diluted share, in the prior year.
- 3The Pharmaceutical segment showed a notable increase in sales, up 11.7% year-over-year for the quarter, with strong performance in Immunology, Infectious Diseases, and Oncology.
- 4The Medical Devices and Diagnostics segment also delivered solid growth, with sales up 9.6% for the quarter, largely boosted by the acquisition of Synthes, Inc.
- 5Cash flow from operating activities remained strong, generating $7.3 billion in the first six months of 2013.
- 6The company declared a regular cash dividend of $0.66 per share for the quarter, continuing its practice of returning capital to shareholders.
- 7The effective income tax rate for the first six months of 2013 decreased to 19.0% from 24.9% in the prior year, primarily due to R&D tax credits and other favorable tax provisions.