J&J 2008 full-year sales increased 4.3%

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Johnson & Johnson announced sales for 2008 were $63.7 billion, an increase of 4.3% over 2007.

Operational growth was 1.9% with currency contributing 2.4%. Domestic sales decreased 0.4%, while international sales increased 9.7%, reflecting operational growth of 4.6% and a positive currency impact of 5.1%. J&J reported that worldwide sales in Q4 of 2008 were $15.2 billion, a decrease of 4.9%, compared to the fourth quarter of 2007.

Domestic sales decreased 6.9%, while international sales decreased 2.7%, reflecting operational growth of 5.4% and a negative currency impact of 8.1%.

Full-year 2008 net earnings included special items related to in-process research and development charges of $181 million with no tax benefit and an after-tax gain of $229 million representing the net impact of litigation settlements in the fourth quarter.

Full-year 2007 net earnings included special items related to an in-process research and development charge of $807 million with no tax benefit, an after-tax charge of $528 million for restructuring, an after-tax non-cash charge of $441 million for the NATRECOR intangible asset write-down, and a tax gain of $267 million associated with the restructuring of certain international subsidiaries.

The Company announced earnings guidance for full-year 2009 of $4.45 to $4.55 per share, which excludes the impact of special items. This guidance includes anticipated dilution of $.03 to $.05 from the acquisition of Mentor Corporation, which is expected to close in January 2009.

According to J&J, the Worldwide Consumer segment achieved annual sales in 2008 of $16.0 billion, an increase of 10.8% over the prior year with operational growth of 8.3% and a positive impact from currency of 2.5%.
Domestic sales increased 8.3%, while international sales increased 12.8% (8.3% from operations and 4.5% from currency).

The sales results reflect the strong performance of the U.S. launch of Zyrtec, an OTC allergy treatment; the skin care lines of Neutrogena, Aveeno and Clean & Clear; international sales of Baby Care products; and Listerine antiseptic mouth rinse. Also contributing to growth were sales from the recently completed acquisition of Dabao, the leading moisturizer in China.

Worldwide Pharmaceutical sales of $24.6 billion for the full-year 2008 represented a decrease of 1.2% versus the prior year with a decline of 3.1% operationally and a positive impact from currency of 1.9%. Domestic sales decreased 4.9%, while international sales increased 5.1% (0.1% from operations and 5.0% from currency).
Sales results reflect the strong performance of Velcade, a treatment for multiple myeloma; Remicade, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; Risperdal Consta, an antipsychotic medication; and Topamax, an antiepileptic and a treatment for the prevention of migraine headaches.

Sales results of Risperdal, an antipsychotic medication, were negatively impacted by generic competition and sales of Procrit, a product for the treatment of anemia, were lower due to a decline in the market.

J&J chairman and CEO William C. Weldon, said that he was extremely proud of J&J accomplishments in 2008 and the way company personnel met their commitments.

Weldon said that the company delivered solid earnings growth and made significant progress in its research pipelines while continuing to invest in the future growth of the business. He added that he was confident that J&J was positioned for continued leadership and growth in health care.

 

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