Tuesday, July 28, 2015

J&J sales increase in second quarter, but profit declines partly because of litigation costs

Health-care giant Johnson & Johnson said Tuesday morning that its total sales in the second quarter of 2013 increased 8.5 percent but its net earnings decreased by 10.6 percent, partly attributable to litigation costs, compared to the same period in 2012.

J&J sales increase in second quarter, but profit declines partly because of litigation costs

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Johnson and Johnson (AP Photo)
Johnson and Johnson (AP Photo)

 Health-care giant Johnson & Johnson said Tuesday morning that its total sales in the second quarter of 2013 increased 8.5 percent but its net earnings decreased by 10.6 percent, partly attributable to litigation costs, compared to the same period in 2012.

One of 30 companies used to calculate the Dow Jones Industrial Average, J&J is based in New Brunswick and has operations elsewhere in the Philadelphia region.

J&J said its sales for the quarter increased from $16.139 billion in 2012 to $17.505 billion in same period of 2013, an increase of 8.5 percent. The company said net earnings decreased from $3.91 billion to $3.497 billion for the same period.

J&J listed $529 million in litigation costs as one factor in the decline in net earnings.

The company faces patient lawsuits in state and federal courts related to several products and its marketing practices. Still pending is a federal investigation of how the company marketed its antipsychotic drug Risperdal. In previous filings with the Securities and Exchange Commission, J&J said the investigation could eventually result in criminal charges being filed.

On Monday, J&J declared a cash dividend for the third quarter of 2013 of $0.66 per share, with the dividend payable on Sept. 10, to shareholders of record at the close of business on Aug. 27.

J&J's revenue was helped by the sales of medical devices from Synthes, which had its U.S. headquarters in Chester County until J&J completed a $19.7 billion purchase of the company in 2012.

J&J's McNeil Consumer Healthcare subsidiary is based in Fort Washington, Montgomery County. The factory at that location has been closed since April 2010 because of production problems. The company has tried to shift production of products such as Tylenol and Motrin to other facilities.

"We delivered solid first quarter results led by the success of many of our recently launched pharmaceutical products and the addition of Synthes to our orthopedics business. Also of note is the growth in our over-the-counter medicines business as we continue to make progress in returning a reliable supply of high quality products to our customers," Alex Gorsky, J&J chairman and chief executive officer, said in a statement. "Our investments to advance our pipelines and expand our global presence, along with the outstanding efforts of our talented people, will enable us to continue to deliver sustainable growth and meaningful innovations to patients and customers around the world."

 

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About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

David Sell
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