J&J Q1 profit falls 10 percent despite higher sales
BY LINDA A. JOHNSON | AP Business Writer April 16, 2013 7:56AM
Johnson & Johnson’s first-quarter profit fell by just over 10 percent as increased sales were offset by higher costs for production, marketing and administration. | AP file photo
Updated: April 16, 2013 7:56AM
Johnson & Johnson’s first-quarter profit fell by just over 10 percent as increased sales were offset by higher costs for production, marketing and administration.
The maker of Tylenol, prescription drugs and medical devices said Tuesday that it earned $3.5 billion, or $1.22 per share, down 10.6 percent from $3.9 billion, or $1.41 per share, a year earlier.
Excluding litigation and acquisition-related charges totaling $610 million, income would have been $4.1 billion, or $1.44 per share. That beat analysts’ forecast by 4 cents per share.
Revenue totaled $17.5 billion, up 8.5 percent from $16.1 billion a year earlier. Analysts expected sales of $17.46 billion.
U.S. sales were up 11.2 percent as the company, based in New Brunswick, N.J., returned more of its recalled nonprescription drugs to store shelves. International sales grew by 6.3 percent.
Sales climbed 10 percent to $7.06 billion in the medical devices and diagnostics business, J&J’s biggest unit. That was partly because of new products acquired last year with orthopedics device maker Synthes, J&J’s biggest acquisition ever at $19.1 billion.