Summary
Johnson & Johnson reported solid performance for the nine months ended September 30, 2018, with worldwide sales increasing by 8.8% to $61.2 billion, driven by strong operational growth and a positive currency impact. Net earnings for the nine months were $12.3 billion. The company's diverse segments, including Pharmaceutical and Medical Devices, demonstrated robust growth, with key products like STELARA®, IMBRUVICA®, and vision care products showing significant gains. The company also made strategic acquisitions and divestitures, including the acquisition of Actelion and the divestiture of its LifeScan business, aimed at optimizing its portfolio and driving future growth. In the third quarter, worldwide sales grew by 3.6% to $20.3 billion, with Pharmaceutical and Medical Device segments showing continued strength. The company maintained its commitment to returning value to shareholders through dividends and share repurchases. Despite facing ongoing litigation and regulatory scrutiny, particularly concerning talc-based powders and certain pharmaceutical products, Johnson & Johnson reiterated its expectation that these matters will not have a material adverse effect on its financial position, though they may impact results of operations in specific periods.
Key Highlights
- 1Worldwide sales for the nine months ended September 30, 2018, increased 8.8% to $61.2 billion, with operational growth of 7.5%.
- 2Third-quarter worldwide sales grew 3.6% to $20.3 billion, with operational growth of 5.5%.
- 3Net earnings for the nine months ended September 30, 2018, were $12.3 billion, a slight increase from $12.0 billion in the prior year period.
- 4Pharmaceutical segment sales showed strong growth, increasing 14.9% for the nine months and 6.7% for the third quarter.
- 5Medical Devices segment sales increased 3.6% for the nine months and were flat (down 0.2%) for the third quarter.
- 6The company reported an in-process research and development (IPR&D) charge of $1.1 billion in the nine months ended September 30, 2018, related to impairments of AL-8176 and a discontinuation of another project.
- 7Johnson & Johnson completed several strategic transactions, including the divestiture of its LifeScan business and the acquisition of Zarbee’s, Inc. and Medical Enterprises Distribution.