2009 Fourth-Quarter Sales of $16.6 Billion increased 9.0%; EPS was
$0.79 2009 Full-Year Sales of $61.9 Billion decreased 2.9%;
Full-Year EPS was $4.40 Excluding Special Items, 2009
Fourth-Quarter EPS was $1.02, an increase of 8.5% And 2009
Full-Year EPS was $4.63, an increase of 1.8%* NEW BRUNSWICK, N.J.,
Jan. 26 /PRNewswire-FirstCall/ -- Johnson & Johnson today
announced sales of $16.6 billion for the fourth quarter of 2009, an
increase of 9.0% as compared to the fourth quarter of 2008.
Operational growth was 4.5% and currency contributed 4.5%. Domestic
sales were up 2.6%, while international sales increased 15.6%,
reflecting operational growth of 6.4% and a positive currency
impact of 9.2%. Worldwide sales for the full-year 2009 were $61.9
billion, a decrease of 2.9% over 2008. Operational results declined
0.3% and the negative impact of currency was 2.6%. Domestic sales
declined 4.4%, while international sales declined 1.4%, reflecting
operational growth of 3.9% and a negative currency impact of 5.3%.
Net earnings and diluted earnings per share for the fourth quarter
of 2009 were $2.2 billion and $0.79 respectively. Fourth quarter
2009 net earnings included an after-tax restructuring charge of
$852 million and an after-tax gain of $212 million representing the
net impact of litigation matters. Fourth quarter 2008 net earnings
included special items related to in-process research and
development charges of $141 million with no tax benefit and an
after-tax gain of $229 million representing the net impact of
litigation matters. Excluding these special items, net earnings for
the current quarter were $2.8 billion and diluted earnings per
share were $1.02, representing increases of 8.4% and 8.5%,
respectively, as compared to the same period in 2008.* Net earnings
and diluted earnings per share for the full-year 2009 were $12.3
billion and $4.40. Full-year 2009 net earnings included an
after-tax restructuring charge of $852 million and an after-tax
gain of $212 million representing the net impact of litigation
matters. Full-year 2008 net earnings included special items related
to in-process research and development charges of $181 million with
no tax benefit and an after-tax gain of $229 million representing
the net impact of litigation matters. Excluding these special
items, net earnings for the full-year 2009 were $12.9 billion.
Diluted earnings per share for the full-year 2009 were $4.63,
representing an increase of 1.8%, as compared with the full-year in
2008.* The Company announced earnings guidance for full-year 2010
of $4.85 to $4.95 per share, which excludes the impact of special
items. "In a year of tremendous challenge, we maintained our
long-term focus while delivering solid results -- a great tribute
to the employees of Johnson & Johnson," said William C. Weldon,
Chairman and Chief Executive Officer. "We made important
investments in acquisitions, strategic partnerships and launches of
recently-approved innovative products while preserving our
financial flexibility to continue to invest in innovation. This
positions us well for continued leadership and growth in global
health care as we enter 2010." Worldwide Consumer sales of $15.8
billion for the full-year 2009 represented a decrease of 1.6% over
the prior year with operational growth of 2.0% and a negative
currency impact of 3.6%. Domestic sales decreased 1.4%;
international sales decreased 1.7%, which reflected operational
growth of 4.7% and a negative currency impact of 6.4%. Primary
contributors to operational growth included NEUTROGENA®, AVEENO®
and the Dabao skin care products; international sales of LISTERINE®
antiseptic mouthrinse; SPLENDA® No Calorie Sweetener; and sales
from the acquisition of Vania Expansion SNC. Sales growth was
negatively impacted due to the initial build of inventory by the
trade related to the 2008 launch of Zyrtec. Worldwide
Pharmaceutical sales of $22.5 billion for the full-year 2009
represented a decrease of 8.3% versus the prior year with an
operational decline of 6.1% and a negative impact from currency of
2.2%. Domestic sales decreased 12.1%; international sales decreased
2.6%, which reflected an operational increase of 3.0% and a
negative currency impact of 5.6%. Products with strong operational
growth included REMICADE® (infliximab), a biologic approved for the
treatment of a number of immune mediated inflammatory diseases;
PREZISTA® (darunavir), a treatment for HIV; VELCADE® (bortezomib),
a treatment for multiple myeloma; and RISPERDAL® CONSTA®
(risperidone) Long-Acting Treatment, an antipsychotic medication.
Sales results of TOPAMAX® (topiramate), an antiepileptic and a
treatment for migraine, and RISPERDAL® (risperidone), an
antipsychotic medication, were negatively impacted by generic
competition. During the quarter, the Company submitted a New Drug
Application to the U.S. Food and Drug Administration (FDA) for
tapentadol extended release tablets, an investigational oral
analgesic for the management of moderate to severe chronic pain in
patients 18 years of age or older. In addition, the Company
submitted a Marketing Authorization Application to the European
Medicines Agency for paliperidone palmitate, a once-monthly
atypical antipsychotic intramuscular injection for the treatment of
adults with schizophrenia. Worldwide Medical Devices and
Diagnostics sales of $23.6 billion for the full-year 2009
represented an increase of 1.9% versus the prior year with an
operational increase of 4.2% and a negative impact from currency of
2.3%. Domestic sales increased 4.5%; international sales decreased
0.2%, which reflected an operational increase of 4.0% and a
negative currency impact of 4.2%. Primary contributors to
operational growth included Ethicon's surgical care and aesthetics
products; DePuy's orthopaedic joint reconstruction, spine, and
sports medicine businesses; Ethicon Endo-Surgery's minimally
invasive products; and Ortho-Clinical Diagnostics' professional
products. This growth was partially offset by lower sales in the
Cordis franchise, reflecting continued competition in the
drug-eluting stent market. During the quarter, the Company entered
into a definitive agreement to acquire Acclarent, Inc., a privately
held medical technology company dedicated to designing, developing
and commercializing devices that address conditions affecting the
ear, nose and throat. On January 20, 2010, the acquisition of
Acclarent was completed. Also in the quarter, the Company completed
the acquisitions of Finsbury Orthopaedics Limited, a privately held
UK-based manufacturer and global distributor of orthopaedic
implants, and Gloster Europe, a privately held developer of
innovative disinfection processes and technologies to prevent
healthcare-acquired infections. The Company also announced that it
had received FDA clearance for marketing the CARTO® 3 System, the
most advanced three-dimensional imaging technology for use by
electrophysiologists in treating cardiac arrhythmias, commonly
referred to as irregular heart rhythms. About Johnson & Johnson
Caring for the world, one person at a time...inspires and unites
the people of Johnson & Johnson. We embrace research and
science - bringing innovative ideas, products and services to
advance the health and well-being of people. Our 115,000 employees
at more than 250 Johnson & Johnson companies work with partners
in health care to touch the lives of over a billion people every
day, throughout the world. * Net earnings and diluted earnings per
share excluding special items, such as after-tax restructuring
charges, the net impact of litigation gains and in-process research
and development charges, are non-GAAP financial measures and should
not be considered replacements for GAAP results. A reconciliation
of these non-GAAP financial measures to the most directly
comparable GAAP financial measures can be found in the Investor
Relations section of the Company's website at http://www.jnj.com/.
NOTE TO INVESTORS Johnson & Johnson will conduct a meeting with
members of the investment community to discuss this news release
today at 8:30 a.m., Eastern Time. A simultaneous webcast of the
meeting for investors and other interested parties may be accessed
by visiting the Johnson & Johnson website at
http://www.investor.jnj.com/. A replay and podcast will be
available approximately two hours after the live webcast by
visiting http://www.investor.jnj.com/. Copies of the financial
schedules accompanying this press release are available at
http://www.investor.jnj.com/historical-sales.cfm. The schedules
include supplementary sales data, a condensed consolidated
statement of earnings, sales of key products/franchises and a
pharmaceutical pipeline of selected compounds in late stage
development. Additional information on Johnson & Johnson can be
found on the Company's website at http://www.jnj.com/. (This press
release contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. These statements
are based on current expectations of future events. If underlying
assumptions prove inaccurate or unknown risks or uncertainties
materialize, actual results could vary materially from Johnson
& Johnson's expectations and projections. Risks and
uncertainties include general industry conditions and competition;
economic conditions, such as interest rate and currency exchange
rate fluctuations; technological advances and patents attained by
competitors; challenges inherent in new product development,
including obtaining regulatory approvals; domestic and foreign
health care reforms and governmental laws and regulations; and
trends toward health care cost containment. A further list and
description of these risks, uncertainties and other factors can be
found in Exhibit 99 of the Company's Annual Report on Form 10-K for
the fiscal year ended December 28, 2008. Copies of this Form 10-K,
as well as subsequent filings, are available online at
http://www.sec.gov/, http://www.jnj.com/ or on request from Johnson
& Johnson. Johnson & Johnson does not undertake to update
any forward-looking statements as a result of new information or
future events or developments.) Johnson & Johnson and
Subsidiaries Supplementary Sales Data (Unaudited; Dollars in
Millions) FOURTH QUARTER* ----------- --------------- Percent
Change ----------------------------- 2009 2008 Total Operations
Currency ---- ---- ----- ---------- -------- Sales to customers by
segment of business Consumer U.S. $1,712 1,655 3.4% 3.4 -
International 2,537 2,200 15.3 6.5 8.8 ------------- ----- -----
---- --- --- 4,249 3,855 10.2 5.2 5.0 ----- ----- ---- --- ---
Pharmaceutical U.S. 3,338 3,430 (2.7) (2.7) - International 2,655
2,255 17.7 8.0 9.7 ------------- ----- ----- ---- --- --- 5,993
5,685 5.4 1.6 3.8 ----- ----- --- --- --- Med Devices &
Diagnostics U.S. 2,817 2,582 9.1 9.1 - International 3,492 3,060
14.1 4.9 9.2 ------------- ----- ----- ---- --- --- 6,309 5,642
11.8 6.8 5.0 ----- ----- ---- --- --- U.S. 7,867 7,667 2.6 2.6 -
International 8,684 7,515 15.6 6.4 9.2 ------------- ----- -----
---- --- --- Worldwide $16,551 15,182 9.0% 4.5 4.5 ---------
------- ------ --- --- --- (Unaudited; Dollars in Millions) TWELVE
MONTHS** ----------- --------------- Percent Change
------------------------------ 2009 2008 Total Operations Currency
---- ---- ----- ---------- -------- Sales to customers by segment
of business Consumer U.S. $6,837 6,937 (1.4)% (1.4) - International
8,966 9,117 (1.7) 4.7 (6.4) ------------- ----- ----- ---- --- ----
15,803 16,054 (1.6) 2.0 (3.6) ------ ------ ---- --- ----
Pharmaceutical U.S. 13,041 14,831 (12.1) (12.1) - International
9,479 9,736 (2.6) 3.0 (5.6) ------------- ----- ----- ---- --- ----
22,520 24,567 (8.3) (6.1) (2.2) ------ ------ ---- ---- ---- Med
Devices & Diagnostics U.S. 11,011 10,541 4.5 4.5 -
International 12,563 12,585 (0.2) 4.0 (4.2) ------------- ------
------ ---- --- ---- 23,574 23,126 1.9 4.2 (2.3) ------ ------ ---
--- ---- U.S. 30,889 32,309 (4.4) (4.4) - International 31,008
31,438 (1.4) 3.9 (5.3) ------------- ------ ------ ---- --- ----
Worldwide $61,897 63,747 (2.9)% (0.3) (2.6) --------- -------
------ ----- ---- ---- *Fourth Quarter 2009 includes fourteen weeks
and 2008 includes thirteen weeks. **Twelve Months 2009 includes
fifty-three weeks and 2008 includes fifty-two weeks. Johnson &
Johnson and Subsidiaries Supplementary Sales Data (Unaudited;
Dollars in Millions) FOURTH QUARTER* ----------- ---------------
Percent Change ----------------------------- 2009 2008 Total
Operations Currency ---- ---- ----- ---------- -------- Sales to
customers by geographic area U.S. $7,867 7,667 2.6% 2.6 - ----
------ ----- --- --- --- Europe 4,412 3,851 14.6 5.1 9.5 Western
Hemisphere excluding U.S. 1,541 1,187 29.8 19.0 10.8 Asia-Pacific,
Africa 2,731 2,477 10.3 2.3 8.0 ------------- ----- ----- ---- ---
--- International 8,684 7,515 15.6 6.4 9.2 ------------- -----
----- ---- --- --- Worldwide $16,551 15,182 9.0% 4.5 4.5 ---------
------- ------ --- --- --- (Unaudited; Dollars in Millions) TWELVE
MONTHS** ----------- --------------- Percent Change --------------
2009 2008 Total Operations Currency ---- ---- ----- ----------
-------- Sales to customers by geographic area U.S. $30,889 32,309
(4.4)% (4.4) - ---- ------- ------ ----- ---- --- Europe 15,934
16,782 (5.1) 2.1 (7.2) Western Hemisphere excluding U.S. 5,156
5,173 (0.3) 8.8 (9.1) Asia-Pacific, Africa 9,918 9,483 4.6 4.4 0.2
------------- ----- ----- --- --- --- International 31,008 31,438
(1.4) 3.9 (5.3) ------------- ------ ------ ---- --- ---- Worldwide
$61,897 63,747 (2.9)% (0.3) (2.6) --------- ------- ------ -----
---- ---- *Fourth Quarter 2009 includes fourteen weeks and 2008
includes thirteen weeks. **Twelve Months 2009 includes fifty-three
weeks and 2008 includes fifty-two weeks. Johnson & Johnson and
Subsidiaries ----------------------------------- Condensed
Consolidated Statement of Earnings ----------------- --------
(Unaudited; in Millions Except Per Share Figures) FOURTH QUARTER
---------------- 2009 2008 ---- ---- Percent Percent Percent
Increase Amount to Sales Amount to Sales (Decrease)
----------------- ------ -------- ------ -------- --------- Sales
to customers $16,551 100.0 $15,182 100.0 9.0 ---------- -------
----- ------- ----- --- Cost of products sold 5,312 32.1 4,372 28.8
21.5 Selling, marketing and administrative expenses 5,629 34.0
5,665 37.3 (0.6) Research expense 2,213 13.4 2,108 13.9 5.0
In-process research & development (IPR&D) - - 141 0.9
Interest (income)expense, net 81 0.5 17 0.1 Other (income)expense,
net (361) (2.2) (638) (4.2) Restructuring expense 1,073 6.5 - -
------------- ----- --- - - ----- Earnings before provision for
taxes on income 2,604 15.7 3,517 23.2 (26.0) Provision for taxes on
income 398 2.4 803 5.3 (50.4) ---------------- --- --- --- ---
----- Net earnings $2,206 13.3 $2,714 17.9 (18.7) ------------
------ ---- ------ ---- ----- Net earnings per share (Diluted)
$0.79 $0.97 (18.6) Average shares outstanding (Diluted) 2,796.5
2,801.6 Effective tax rate 15.3% 22.8% ----------------- Adjusted
earnings before provision for taxes and net earnings Earnings
before provision for taxes on income $3,404 (1) 20.6 $3,279 (2)
21.6 3.8 Net earnings $2,846 (1) 17.2 $2,626 (2) 17.3 8.4 Net
earnings per share (Diluted) $1.02 (1) $0.94 (2) 8.5 Effective tax
rate 16.4% 19.9% --------------- ---- ---- (1) The difference
between as reported earnings and as adjusted earnings before
provision for taxes on income, net earnings and net earnings per
share (diluted) is the exclusion of restructuring expense of $1,186
million ($1,073 million restructuring expense and $113 million
related to restructuring included in cost of products sold), $852
million and $0.31 per share, respectively, and the exclusion of
income from net litigation of $386 million, $212 million and $0.08
per share, respectively. (2) The difference between as reported
earnings and as adjusted earnings before provision for taxes on
income, net earnings and net earnings per share (diluted) is the
exclusion of IPR&D of $141 million with no tax benefit and
$0.05 per share, respectively, and the exclusion of income from net
litigation of $379 million, $229 million and $0.08 per share,
respectively. Johnson & Johnson and Subsidiaries
----------------------------------- Condensed Consolidated
Statement of Earnings (Unaudited; in Millions Except Per Share
Figures) TWELVE MONTHS ---------------- 2009 2008 ---- ---- Percent
Percent Percent Increase Amount to Sales Amount to Sales (Decrease)
------------------ ------ -------- ------ -------- ------------
Sales to customers $61,897 100.0 $63,747 100.0 (2.9)
------------------ ------- ----- ------- ----- ---- Cost of
products sold 18,447 29.8 18,511 29.1 (0.3) Selling, marketing and
administrative expenses 19,801 32.0 21,490 33.7 (7.9) Research
expense 6,986 11.3 7,577 11.9 (7.8) In-process research &
development (IPR&D) - - 181 0.3 Interest (income)expense, net
361 0.6 74 0.1 Other (income)expense, net (526) (0.8) (1,015) (1.6)
Restructuring expense 1,073 1.7 - - ------------- ----- --- - -
---- Earnings before provision for taxes on income 15,755 25.4
16,929 26.5 (6.9) Provision for taxes on income 3,489 5.6 3,980 6.2
(12.3) ---------------- ----- --- ----- --- ----- Net earnings
$12,266 19.8 $12,949 20.3 (5.3) ------------ ------- ---- -------
---- ---- Net earnings per share (Diluted) $4.40 $4.57 (3.7)
Average shares outstanding (Diluted) 2,789.1 2,835.6 Effective tax
rate 22.1% 23.5% ------------------ Adjusted earnings before
provision for taxes and net earnings Earnings before provision for
taxes on income $16,555 (1) 26.7 $16,731 (2) 26.2 (1.1) Net
earnings $12,906 (1) 20.9 $12,901 (2) 20.2 - Net earnings per share
(Diluted) $4.63 (1) $4.55 (2) 1.8 Effective tax rate 22.0% 22.9%
--------------- ---- ---- (1) The difference between as reported
earnings and as adjusted earnings before provision for taxes on
income, net earnings and net earnings per share (diluted) is the
exclusion of restructuring expense of $1,186 million ($1,073
million restructuring expense and $113 million related to
restructuring included in cost of products sold), $852 million and
$0.31 per share, respectively, and the exclusion of income from
fourth quarter net litigation of $386 million, $212 million and
$0.08 per share, respectively. (2) The difference between as
reported earnings and as adjusted earnings before provision for
taxes on income, net earnings and net earnings per share (diluted)
is the exclusion of IPR&D of $181 million with no tax benefit
and $0.06 per share, respectively, and the exclusion of income from
fourth quarter net litigation of $379 million, $229 million and
$0.08 per share, respectively. Please go to http://www.jnj.com/ for
the Sales of Key Products charts. DATASOURCE: Johnson & Johnson
CONTACT: Press, Jeffrey J. Leebaw, +1-732-524-3350, +1-732-642-6608
(M), Bill Price, +1-732-524-6623, +1-732-668-3735 (M), or
Investors, Louise Mehrotra, +1-732-524-6491, Stan Panasewicz,
+1-732-524-2524, Lesley Fishman, +1-732-524-3922, Tina Pinto,
+1-732-524-2034 Web Site: http://www.jnj.com/
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