The FINANCIAL — Johnson & Johnson last week announced record sales of $16.0 billion for the fourth quarter of 2007, an increase of 16.6% as compared to the fourth quarter of 2006.
Operational growth was 11.9% and currency contributed 4.7%. Domestic sales were up 9.1%, while international sales increased 25.8%, reflecting operational growth of 15.3% and a positive currency impact of 10.5%.
According to Johnson & Johnson worldwide sales for the year 2007 were $61.1 billion, an increase of 14.6% over 2006. Operational growth was 11.5% with currency contributing 3.1%. On a proforma basis, including the net impact of the acquisition of Pfizer Consumer Healthcare in both periods, worldwide sales increased operationally 4.6% and 4.2% for the fourth-quarter and full-year 2007, respectively.
According to Johnson & Johnson net earnings and diluted earnings per share for the fourth quarter of 2007 were $2.4 billion and $.82, representing increases of 9.5% and 10.8% respectively, compared to the same period in 2006.
Net earnings for the fourth quarter of 2007 included an after-tax, non-cash charge of $441 million for the write-down of the intangible asset related to NATRECOR (nesiritide) and a tax gain of $267 million associated with the restructuring of certain international subsidiaries. Net earnings for the fourth quarter of 2006 included an after-tax charge for in-process research and development of $217 million associated with the acquisition of Pfizer Consumer Healthcare.
Excluding these special items, 2007 fourth-quarter net earnings were $2.5 billion and earnings per share were $.88, representing increases of 6.8% and 8.6%, respectively, as compared with the same period in 2006.
Net earnings and diluted earnings per share for the year, as reported, were $10.6 billion and $3.63, decreases of 4.3% and 2.7%, respectively, as compared with 2006. Full-year 2007 net earnings included after-tax charges of $807 million for in-process research and development;
“Despite challenges in certain markets, our broad base of businesses allowed us to achieve solid results in 2007, building on our foundation of long-term profitable growth,” said William C. Weldon, Chairman and Chief Executive Officer. “It was a year of significant progress in our pipeline; the successful integration of Pfizer Consumer Healthcare; and the creation of new organizational structures focused on future growth.”
Worldwide, the Medical Devices and Diagnostics segment achieved annual sales of $21.7 billion in 2007, representing an increase over the prior year of 7.2% with operational growth of 3.9% and a positive currency impact of 3.3%. Domestic sales increased 3.2%, while international sales increased 11.1% (4.6% from operations and 6.5% from currency).
During the quarter, the Company completed the acquisition of certain assets, including intellectual property rights, related to the treatment of vertebral compression fractures from Disc-O-Tech Medical Technologies, Ltd., a privately-held company, and its subsidiary.
Worldwide Pharmaceutical sales of $24.9 billion for the full-year 2007 represented an increase of 6.9% versus the prior year with operational growth of 4.3% and a positive impact from currency of 2.6%. Domestic sales increased 3.4%, while international sales increased 13.3% (5.9% from operations and 7.4% from currency).
According to Johnson & Johnson during the quarter, the Company made significant progress in advancing its pharmaceutical pipeline with several new drug applications submitted for approval to regulatory authorities in the U.S. and Europe.
The Worldwide Consumer segment achieved annual sales in 2007 of $14.5 billion, an increase of 48.3% over the prior year with operational growth of 44.2% and a positive impact from currency of 4.1%. Domestic sales increased 40.1%, while international sales increased 55.5% (47.8% from operations and 7.7% from currency).
Johnson & Johnson is broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 250 Johnson & Johnson operating companies employ approximately 119,000 men and women in 57 countries and sell products throughout the world.
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