J&J keeps a lid on its expenses

City A.M. Reporter
QUARTERLY earnings rose at US healthcare firm Johnson & Johnson, but declining sales remain a challenge for the firm.

Net earnings rose to $3.91bn, up 12.5 per cent on a year earlier.

Revenue slipped 0.2 per cent to $16.14bn, which J&J blamed on the strength of the US dollar.

Analysts were impressed by the speed at which J&J is managing to cut costs in sales and administration while keeping up spending on research and development.

“That’s something they’ve been promising for a long time and we haven’t really seen until now,” said Gabelli & Co analyst Jeff Jonas.