Johnson & Johnson (NYSE:JNJ) managed to post a 7.5 percent boost to its bottom line despite flat second-quarter sales, but saw its stock slide on lowered guidance from problems with its over-the-counter drug unit.
The New Brunswick, N.J.-based health products conglomerate’s medical device and diagnostics business posted sales of $6.13 billion, up 4.1 percent compared with $5.89 billion during the same period last year.
Johnson & Johnson posted total Q2 net earnings of $3.45 billion, or $1.23 per diluted share, on sales of $15.33 billion. That compares with net earnings of $3.21 billion, or $1.15 per diluted share, on sales of $15.24 billion during Q2 2009.
The company lowered its full-year guidance to $4.65 to $4.75 per sharedown from $4.80 to $4.90 per share, citing “the impact of the voluntary recalls announced earlier this year of certain over-the-counter medicines and the suspension of manufacturing at the McNeil Consumer Healthcare facility in Fort Washington, Pa.," and unfavorable foreign currency exchange rates, according to a press release.
JNJ’s Cordis stents division continued to flag, posting worldwide sales of $655 million, down 2.8 percent compared with $674 million during Q2 2009. The company chalked the decline up to "continued competition in the drug-eluting stent market," according to the release. Other segments of its medical device division fared better, including its Ethicon and Ethicon Endo-Surgery units, which posted sales increases of 8.7 percent and 7.3 percent, respectively. Here’s a breakdown of each unit’s performance within the division:
|MEDICAL DEVICES AND DIAGNOSTICS||Q2 2010||Q2 2009||% Change|
|Cordis:||$655 million||$674 million||-2.8%|
|DePuy:||$1.38 billion||$1.32 billion||3.9%|
|Diabetes Care:||$616 million||$610 million||1.0%|
|Ethicon:||$1.13 billion||$1.04 billion||8.7%|
|Ethicon Endo-Surgery:||$1.20 billion||$1.12 billion||7.3%|
|Ortho-Clinical Diagnostics:||$494 million||$494 million||0.0%|
|Vision Care:||$662 million||$630 million||5.1%|
|TOTAL:||$6.13 billion||$5.89 billion||4.1%|
The division made a key acquisition and a divestiture during the quarter, selling off Ethicon Endo-Care’s breast care business to Devicor Medical Products Inc. for an undisclosed amount and agreeing to drop $480 million on Micrus Endovascular Corp. (NSDQ:MEND), which makes cerebral vascular devices.
JNJ shares were down nearly 1.5 percent to $59.57 in early-morning trading.