Johnson & Johnson (NYSE:JNJ) managed to top Wall Street’s expectations with its second-quarter results, despite posting a nearly 20 percent bottom-line slide.
The New Brunswick, N.J.-based health care products conglomerate reported profits of $2.78 billion, or $1.00 per diluted share, on sales of $16.60 billion for the three months ended March 30.
That’s a top-line improvement of 8.3 percent compared with the same period last year, when J&J logged profits of $3.45 billion, or $1.23 per diluted share, on sales of $15.33 billion.
Johnson & Johnson said net earnings took a hit from after-tax charges of $549 million from the plan to get its Cordis Corp. subsidiary out of the coronary stent business, $223 million on “the net impact of expenses related to litigation, additional DePuy ASR Hip recall costs” and a mark-to-market gain on its planned acquisition of Synthes Inc. for $21.3 billion.
Excluding those items, Johnson & Johnson would pulled in $3.55 billion, or $1.28 per share, topping analysts’ expectations of $1.24 apiece.
And the company stood pat on its earnings guidance for the full year of $4.90 to $5.00 per share, excluding special items.
“Our recently launched pharmaceutical products continued to achieve strong growth and contributed to our solid second quarter results. We received several new product approvals across our businesses which will benefit patients around the world and drive future growth,” chairman & CEO William Weldon said in prepared remarks. “We continue to invest in building leadership positions and capabilities, and our pending acquisition of Synthes demonstrates our ongoing commitment to serve patients while enhancing shareholder value.”
JNJ shares were down 1.25 percent to $66.25 today in mid-morning activity.
Here’s a look at how the company’s medical device & diagnostics division fared:
MEDICAL DEVICES AND DIAGNOSTICS | |||
Q2 2011 | Q2 2010 | % | |
CARDIOVASCULAR CARE | |||
US | $210 | $265 | -20.8% |
Intl | $377 | $390 | -3.3% |
TOTAL | $587 | $655 | -10.4% |
DEPUY | |||
US | $770 | $776 | -0.8% |
Intl | $699 | $599 | 16.7% |
TOTAL | $1,469 | $1,375 | 6.8% |
DIABETES CARE | |||
US | $333 | $313 | 6.4% |
Intl | $348 | $303 | 14.9% |
TOTAL | $681 | $616 | 10.6% |
ETHICON | |||
US | $540 | $509 | 6.1% |
Intl | $717 | $623 | 15.1% |
TOTAL | $1,257 | $1,132 | 11.0% |
ETHICON ENDO-SURGERY | |||
US | $490 | $507 | -3.4% |
Intl | $805 | $689 | 16.8% |
TOTAL | $1,295 | $1,196 | 8.3% |
ORTHO-CLINICAL DIAGNOSTICS | |||
US | $281 | $264 | 6.4% |
Intl | $269 | $230 | 17.0% |
TOTAL | $550 | $494 | 11.3% |
VISION CARE | |||
US | $245 | $232 | 5.6% |
Intl | $487 | $430 | 13.3% |
TOTAL | $732 | $662 | 10.6% |
TOTAL MEDICAL DEVICES AND DIAGNOSTICS | |||
US | $2,869 | $2,865 | 0.1% |
Intl | $3,702 | $3,265 | 13.4% |
TOTAL | $6,571 | $6,130 | 7.2% |