Johnson & Johnson’s profit rises, tops views

BREAKING NEWS

updated 11:48 a.m. ET Oct. 14, 2008

TRENTON, N.J. - Health care giant Johnson & Johnson on Tuesday reported a 30 percent jump in third-quarter profit, beating Wall Street expectations, due to higher sales of consumer products and medical devices in the quarter and a large restructuring charge a year ago.

The New Brunswick, N.J.-based maker of contraceptives, baby care items, medical devices and prescription drugs reported net income of $3.31 billion, or $1.17 per share, up from $2.55 billion, or 88 cents per share, in the year-ago period.

Revenue climbed 6.3 percent, to $15.9 billion from $14.97 billion.

Analysts surveyed by Thomson Financial expected earnings per share of $1.11 and revenue of $15.69 billion.

The higher consumer and medical device sales, mainly overseas, overcame flat sales of prescription medicines, and favorable currency exchange rates due to the weak dollar boosted total revenue by 3.1 percent.

Consumer product sales jumped 13 percent to $4.1 billion, while revenue from medical devices and diagnostics increased 8.8 percent to $5.7 billion. Pharmaceutical sales, though, edged up just 0.2 percent to $6.1 billion and would have been down 2.5 percent if not for the boost from exchange rates.

“Johnson & Johnson continues to achieve solid earnings results despite the impact that generic products have had on our pharmaceutical business,” William Weldon, chairman and chief executive officer, said in a statement.

The company raised its full-year profit forecast, to $4.50 to $4.53 per share, excluding one-time charges and other items. During the last quarter, it had forecast a profit of $4.45 to $4.50 a share.

For the first nine months, net income jumped 25 percent, to $10.24 billion, or $3.60 per share, up from $8.2 billion, or $2.81 per share. Revenue was up 7.6 percent, to $48.57 billion from $45.14 billion.

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