Summary
Johnson & Johnson reported solid financial results for the fiscal third quarter and the first nine months of 2013, demonstrating revenue growth across key segments. Total sales for the nine months ended September 29, 2013, increased by 6.6% to $53.0 billion, driven by operational growth of 8.1%, partially offset by a negative currency impact. The Pharmaceutical segment showed particularly strong performance, with sales up 10.6% for the nine months, bolstered by significant growth in Immunology and Oncology. The Medical Devices and Diagnostics segment also saw an increase of 5.7%, albeit with some segment-level declines. Net earnings for the nine months attributable to Johnson & Johnson rose to $10.3 billion, a substantial increase from $8.3 billion in the prior year period. The company also maintained a strong liquidity position, with cash and cash equivalents at $17.2 billion, and continued to return value to shareholders through consistent dividend payments.
Financial Highlights
54 data points| Revenue | $17.57B |
| Cost of Revenue | $5.34B |
| Gross Profit | $12.23B |
| SG&A Expenses | $5.31B |
| Operating Income | $3.87B |
| Interest Expense | $105.00M |
| Net Income | $2.98B |
| EPS (Basic) | $1.06 |
| EPS (Diluted) | $1.04 |
| Shares Outstanding (Basic) | 2.82B |
| Shares Outstanding (Diluted) | 2.88B |
Key Highlights
- 1Worldwide sales grew by 6.6% to $53.0 billion for the first nine months of 2013, with operational growth of 8.1% offsetting negative currency impacts.
- 2The Pharmaceutical segment was a key growth driver, with sales increasing by 10.6% to $20.8 billion for the nine-month period, led by strong performance in Immunology and Oncology.
- 3Net earnings attributable to Johnson & Johnson for the first nine months of 2013 significantly increased to $10.3 billion, up from $8.3 billion in the comparable 2012 period.
- 4The company maintained a robust liquidity position, with cash and cash equivalents totaling $17.2 billion as of September 29, 2013.
- 5Dividends to shareholders remained a priority, with $5.4 billion paid out in the first nine months of 2013, and the company expects to continue regular quarterly cash dividends.
- 6The Medical Devices and Diagnostics segment sales increased by 5.7% to $21.2 billion for the nine months, although certain sub-segments experienced declines.
- 7The company is managing a significant number of legal proceedings and product liability claims, which, while not expected to have a material adverse effect on financial position, could impact results of operations and cash flows in a given period.