AMERICAN pharma and consumer goods group Johnson & Johnson beat Wall Street's quarterly profit estimates yesterday on sharply lower taxes, strong sales of prescription drugs and a revival of over-the-counter medicines that had been recalled over quality control problems.
Newer prescription medicines made big contributions to the firm’s bottom line.
And US sales of over-the-counter (OTC) medicines, including painkillers Tylenol and Motrin, jumped 14 per cent, allowing the broader consumer products business to eke out a 2.4 per cent sales gain in the quarter.
“It’s a strong start to the year that increases the chances that J&J will meet its 2013 profit forecast,” Morningstar analyst Damien Conover said.
Sales at the OTC division had plunged over the last three years after J&J recalled products made at plants in Pennsylvania and Puerto Rico that were shown to have foreign particles or incorrect concentrations of active ingredients.
J&J earned $3.5bn (£2.3bn), compared with $3.91bn in the year-earlier quarter.
Global company sales rose 8.5 per cent to $17.5bn, slightly higher than the $17.42bn expected by Wall Street.
They would have risen by 9.8 per cent, if not for the stronger dollar, which hurts the value of sales in overseas markets.
City A.M. Reporter