Johnson & Johnson‘s (NYSE:JNJ) medical device business posted top-line slides for both the 4th quarter and 2014, even excluding the effects of the strong dollar that helped to push down sales for the healthcare giant.
New Brunswick, N.J.-based J&J reported worldwide medical device sales of $6.65 billion for the 4th quarter, a 9% decline compared with the same period in 2013 and a 4.7% slide on a constant-currency basis. The division brought in full-year revenues of $27.52 billion, down 3.4% compared with the prior year and off 1.6% excluding currency effects.
"2014 was a strong year for Johnson & Johnson, as we delivered solid financial results while continuing to make investments to accelerate growth for the long term. We have built significant momentum in our pharmaceutical business, are realizing the benefits of innovation, scale and breadth in our medical devices business and are continuing our market leadership with iconic brands in our consumer business," chairman & CEO Alex Gorsky said in prepared remarks. "I am proud of our exceptional Johnson & Johnson colleagues who make our success possible with their commitment to advancing health and well-being for patients and consumers around the world."
Overall 4th-quarter profits fell about 28% to $2.52 billion, or 89¢ per share, including a $1.1 billion charge related to Johnson & Johnson’s $21.3 billion buyout of Synthes in 2012. Excluding 1-time items, J&J earned $1.27 per share, a penny above expectations on Wall Street. Total sales fell 0.6% to $18.25 billion for the quarter.
J&J forecast adjusted earnings of $6.12 to $6.27 per share for 2015, but said that it changed its definition of adjusted earnings to include after-tax amortization and special items. Include those, which J&J put at about 32¢, and the guidance becomes $5.80 to $5.95 per share, well below the The Street’s $6.16 consensus estimate.
Q4 sales were off -0.6% for J&J’s orthopedics business but up 2.8% on a constant-currency basis. U.S. orthopedics sales grew 2.4% and international sales slipped -4.1% (+3.3% CC).
JNJ shares were trading at $101.09 apiece in early-morning activity, down 2.8%.
Material from Reuters was used in this report.