Net earnings drop for J&J

Source: Healthcare Digital

Date :16/10/2007 15:45:56

Health care products maker Johnson & Johnson said Tuesday its third-quarter profit fell about eight percent hurt by restructuring charges and weak demand for its Procrit anemia drug.

The New-Jersey based company earned $2.5 billion, or 88 cents per share, in the quarter, compared with $2.76 billion, or 94 cents per share, during the same period last year.

Excluding special items, including the $528 million after-tax restructuring charge, J&J earned $1.06 per share. Analysts on average expected 99 cents per share.

Raised outlook

With the better-than-expected results, the company slightly raised its full-year profit forecast to between $4.10 and $4.13 per share.

In July, J&J said it would reduce its global work force by up to four percent, or up to 4,820 jobs, to cut costs due to slumping sales of heart stents and its No. 2 drug, plus looming patent expirations.

The third-quarter results include a related $528 million charge. Excluding that, J&J posted earnings of $1.06 per share.

J&J is the world's largest pharmaceutical company in terms of annual sales, which are derived from drugs, consumer goods and medical devices.

October 16 2007

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