J&J sees a profit rise, as sales dip
Johnson & Johnson, the US healthcare firm, posted weaker-than-expected quarterly sales yesterday as sales of prescription drugs and cardiac stents disappointed.
While third-quarter profit topped analyst forecasts, that was largely because of cost cuts and lower taxes.
Generic competition and safety concerns have undermined sales of many major products for the firm.
Anaemia medicine Procrit, arthritis treatment Remicade and attention deficit disorder drug Concerta fell short of analyst targets for the quarter. New Jersey-based Johnson & Johnson said net earnings rose 1.1 per cent to $3.35bn (£2.11bn), from $3.31bn a year earlier.
Unexpectedly lower taxes in the quarter bolstered results by five cents per share, said Johnson & Johnson chief financial officer Dominic Caruso.
He said the lower taxes would continue in the fourth quarter and improve full-year results – offsetting the negative impact on earnings of recent acquisitions.
Sales fell 5.3 per cent to $15.08bn, a bit further than the $15.22bn analysts had forecast.
Johnson & Johnson Procrit and Eprex anaemia drugs continued to suffer because of safety concerns for the category, with combined sales falling 12 per cent to $542m.