Johnson & Johnson Reports Higher Earnings -- Update

By Tess Stynes 

Johnson & Johnson said its first-quarter earnings rose 35% led by continued sales growth in the health-care company's pharmaceutical business.

For the year, the company lifted its per-share earnings estimate by a nickel to $5.80 to $5.90, excluding items, from its previous range for per-share profit between $5.75 and $5.85.

New Brunswick, N.J.-based J&J, which makes everything from prescription drugs and medical devices to Band-Aids and Listerine mouthwash, has been shedding slow-growing products and businesses. Late last month J&J accepted Carlyle Group LP's offer to acquire its ortho-clinical diagnostics business for about $4 billion.

The company also has been striving to lower its costs. In January, J&J outlined plans to cut $1 billion in costs over the next three years, in part by consolidating some operations and eliminating jobs.

J&J reported a profit of $4.73 billion, or $1.64 a share, up from $3.5 billion, or $1.22 a share, a year earlier. Excluding a tax benefit, acquisition-related expenses and other items, adjusted earnings rose to $1.54 from $1.44.

Revenue increased 3.5% to $18.12 billion, including a negative currency impact of 1.8%. Analysts polled by Thomson Reuters expected per-share profit of $1.47 and revenue of $18 billion.

The company's pharmaceutical business said revenue rose 11% to $7.5 billion. J&J consumer-products segment posted a sales decline of 3.2% to $3.6 billion, partly owing to recent divestitures.

The medical devices segment, which includes the Synthes business, reported that sales were flat at $7.1 billion.

Write to Tess Stynes at [e-mail]

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