 |  |  |  |  |  |  |  |  |
|
Johnson & Johnson Reports Full-Year and Fourth-Quarter 2005 Results2005 Full-Year EPS Rose 21.8% on Sales Increase of 6.7%
NEW BRUNSWICK, N.J., Jan. 24 /PRNewswire-FirstCall/ -- Johnson & Johnson today announced sales for the fourth quarter of $12.6 billion, a decline of 1.1% as compared to the fourth quarter of 2004. Operational growth was .7% with a negative currency impact of 1.8%. Domestic sales were down 4.2%, while international sales increased 3.1%, reflecting operational growth of 7.5% and a negative currency impact of 4.4%. The fourth-quarter fiscal period of 2005 included 13 weeks of sales versus 14 weeks of sales in 2004. Worldwide sales for the year 2005 were $50.5 billion, an increase of 6.7% over 2004, increasing operationally by 6.0% with currency contributing .7%. Net earnings and diluted earnings per share for the fourth quarter of 2005 were $2.2 billion and $.73. Net Earnings for the fourth quarter of 2004 included a special charge of $789 million related to taxes associated with funds repatriated under the American Jobs Creation Act. Excluding special charges, 2005 fourth-quarter net earnings were $2.2 billion and earnings per share were $.73, representing increases of 9.1% and 9.0%, respectively, as compared with the same period in 2004.* Net earnings and diluted earnings per share for the year, as reported, were $10.4 billion and $3.46, increases of 22.4% and 21.8%, respectively, as compared with 2004. Full year 2005 included a gain of $225 million for a tax adjustment associated with a technical correction made to the American Jobs Creation Act and after-tax in-process research and development charges of $359 million. Full year 2004 results included a tax charge of $789 million related to the American Jobs Creation Act and after-tax in-process research and development charges of $12 million. Excluding these items, net earnings for the year were $10.5 billion and earnings per share were $3.50, representing increases of 13.3% and 12.9% as compared with the same period in 2004. * "The year 2005 was a solid one for Johnson & Johnson, despite significant challenges," said William C. Weldon, Chairman and Chief Executive Officer. "We delivered excellent full-year earnings results, while continuing to make the major investments that will fuel future growth." Worldwide, the Medical Devices and Diagnostics segment achieved annual sales of $19.1 billion in 2005, representing an increase over the prior year of 13.1% with operational growth of 12.5% and a positive impact from currency of .6%. Domestic sales increased 10.6%, while international sales increased 15.7% (14.5% from operations and 1.2% from currency). Cordis' circulatory disease management products were a key contributor to the segment results with the primary driver being the CYPHER Sirolimus-eluting Coronary Stent, which reduces restenosis (reblockage) of a treated coronary artery. CYPHER is the worldwide leader in drug-eluting stents having now been used to treat more than 1.7 million patients with coronary artery disease. Also contributing to the strong performance of the segment were the results from DePuy's orthopaedic joint reconstruction and spinal products, LifeScan's blood glucose monitoring products, Vistakon's disposable contact lenses and Ortho-Clinical Diagnostics' professional diagnostic products. During the quarter, the Company announced that it had entered into a definitive agreement to acquire Animas Corporation, a leading manufacturer of insulin infusion pumps and related products. In January 2006, the Company also announced the acquisition of Hand Innovations LLC, a privately held manufacturer of implants used for the repair of wrist fractures. Worldwide Pharmaceutical sales of $22.3 billion for the full year 2005 represented an increase of .9% versus the prior year with operational growth of .4% and a positive impact from currency of .5%. Domestic sales decreased 3.2%, while international sales increased 9.4% (7.8% from operations and 1.6% from currency). Sales results for DURAGESIC, a transdermal patch for chronic pain; ULTRACET, an analgesic; SPORANOX, an antifungal; and hormonal contraceptives were all negatively impacted by generic competition in the U.S. market. Offsetting the impact of generic competition was the strong performance of RISPERDAL, an antipsychotic medication; REMICADE, a biologic approved for the treatment of a number of Immune Mediated Inflammatory Diseases; TOPAMAX, an antiepileptic and a treatment for the prevention of migraine headaches; LEVAQUIN, an anti-infective; and CONCERTA, a treatment for attention deficit hyperactivity disorder. During the quarter, the Company submitted new drug applications to the U.S. Food and Drug Administration (FDA) for Paliperidone Extended-Release Tablets, a once daily, oral medication for the treatment of schizophrenia, and TMC114, a protease inhibitor being studied as a potential treatment for people infected with HIV-1. The Company also announced that it had entered into an agreement with Bayer HealthCare to jointly develop and market BAY 59-7939 (Factor Xa inhibitor) for the prevention and treatment of thrombosis. In addition, the Company announced that it had entered into an agreement with Biovail Corporation for the marketing and distribution of two novel formulations of tramadol hydrochloride. Worldwide Consumer segment annual sales in 2005 were $9.1 billion, an increase of 9.2% over the prior year with operational growth of 7.8% and a positive impact from currency of 1.4%. Domestic sales increased 4.3%, while international sales increased 14.2% (11.3% from operations and 2.9% from currency). Strong growth in Consumer sales was achieved by McNeil Nutritional's SPLENDA sweetener and the skin care lines of NEUTROGENA, AVEENO and RoC. During the quarter, the Company announced that it had completed the acquisition of the REMBRANDT Brand of oral care products from The Gillette Company. Johnson & Johnson is the world's most comprehensive and 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 200 Johnson & Johnson operating companies employ approximately 115,600 men and women in 57 countries and sell products throughout the world. * Net earnings and diluted earnings per share excluding in-process
research and development charges and special charges related to taxes
associated with funds repatriated under, and tax adjustments associated
with technical corrections made to, the American Jobs Creation Act are
non-GAAP financial measures and should not be considered replacements
for GAAP results. For a reconciliation of these non-GAAP financial
measures to the most directly comparable GAAP financial measures, see
the accompanying tables to this release.
NOTE TO INVESTORS
Johnson & Johnson will conduct a meeting with financial analysts to discuss this news release today at 8:30 a.m., Eastern Standard Time. A simultaneous webcast of the meeting for interested investors and others may be accessed by visiting the Johnson & Johnson website at http://www.jnj.com/. A replay will be available two hours after the live webcast by visiting http://www.jnj.com/ and clicking on "Webcasts/Presentations" in the Investor Relations section. (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 the Company'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(b) of the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2005. Copies of this Form 10-K, as well as subsequent filings, are available online at http://www.sec.gov/ or on request from the Company. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.) For more information on Johnson & Johnson, please visit the Company's website at http://www.jnj.com/. Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) FOURTH QUARTER
Percent Change
2005 2004 Total Operations Currency
Sales to customers by
segment of business
Consumer
U.S. $1,124 $1,134 (0.9)% (0.9) -
International 1,183 1,128 4.9 6.5 (1.6)
2,307 2,262 2.0 2.8 (0.8)
Pharmaceutical
U.S. 3,573 3,980 (10.2) (10.2) -
International 1,909 1,860 2.6 7.6 (5.0)
5,482 5,840 (6.1) (4.5) (1.6)
Med Devices & Diagnostics
U.S. 2,390 2,280 4.8 4.8 -
International 2,431 2,370 2.6 7.8 (5.2)
4,821 4,650 3.7 6.3 (2.6)
U.S. 7,087 7,394 (4.2) (4.2) -
International 5,523 5,358 3.1 7.5 (4.4)
Worldwide $12,610 $12,752 (1.1)% 0.7 (1.8)
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) TWELVE MONTHS
Percent Change
2005 2004 Total Operations Currency
Sales to customers by
segment of business
Consumer
U.S. 4,405 $4,224 4.3 % 4.3 -
International 4,691 4,109 14.2 11.3 2.9
9,096 8,333 9.2 7.8 1.4
Pharmaceutical
U.S. 14,478 14,960 (3.2) (3.2) -
International 7,844 7,168 9.4 7.8 1.6
22,322 22,128 0.9 0.4 0.5
Med Devices & Diagnostics
U.S. 9,494 8,586 10.6 10.6 -
International 9,602 8,301 15.7 14.5 1.2
19,096 16,887 13.1 12.5 0.6
U.S. 28,377 27,770 2.2 2.2 -
International 22,137 19,578 13.1 11.4 1.7
Worldwide $50,514 $47,348 6.7 % 6.0 0.7
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) FOURTH QUARTER
Percent Change
2005 2004 Total Operations Currency
Sales to customers by
geographic area
U.S. $7,087 $7,394 (4.2)% (4.2) -
Europe 2,965 3,027 (2.0) 5.4 (7.4)
Western Hemisphere
excluding U.S. 828 731 13.3 4.8 8.5
Asia-Pacific, Africa 1,730 1,600 8.1 12.7 (4.6)
International 5,523 5,358 3.1 7.5 (4.4)
Worldwide $12,610 $12,752 (1.1)% 0.7 (1.8)
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions) TWELVE MONTHS
Percent Change
2005 2004 Total Operations Currency
Sales to customers by
geographic area
U.S. $28,377 $27,770 2.2 % 2.2 -
Europe 12,187 11,151 9.3 8.8 0.5
Western Hemisphere
excluding U.S. 3,087 2,589 19.2 10.0 9.2
Asia-Pacific, Africa 6,863 5,838 17.6 16.8 0.8
International 22,137 19,578 13.1 11.4 1.7
Worldwide $50,514 $47,348 6.7 % 6.0 0.7
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions
Except Per Share Figures) FOURTH QUARTER
2005 2004
Percent
Percent Percent Increase
Amount to Sales Amount to Sales (Decrease)
Sales to customers $12,610 100.0 $12,752 100.0 (1.1)
Cost of products sold 3,624 28.7 3,706 29.1 (2.2)
Selling, marketing and
administrative expenses 4,562 36.2 4,655 36.5 (2.0)
Research expense 1,976 15.7 1,727 13.5 14.4
In-process research &
development 9 0.1 - -
Interest (income)expense, net (169) (1.3) (12) (0.1)
Other (income)expense, net (30) (0.3) 51 0.4
Earnings before provision for
taxes on income 2,638 20.9 2,625 20.6 0.5
Provision for taxes on income 455 3.6 1,408 11.1 (67.7)
Net earnings $2,183 17.3 $1,217 9.5 79.4
Net earnings per share
(Diluted) $0.73 $0.41 78.0
Average shares outstanding
(Diluted) 3,009.4 3,013.5
Effective tax rate 17.2 % 53.6 %
Adjusted earnings before
provision for taxes and net
earnings
Earnings before
provision for taxes on
income $2,647(1) 21.0 $2,625(2) 20.6 0.8
Net earnings $2,189(1) 17.4 $2,006(2) 15.7 9.1
Net earnings per share
(Diluted) $0.73(1) $0.67(2) 9.0
Effective tax rate 17.3% 23.6%
(1) The difference between as reported earnings before provision for taxes
on income and net earnings and adjusted earnings before provision for
taxes on income and net earnings is IPR&D of $9 million and $6
million, respectively.
(2) The difference between as reported net earnings and net earnings per
share (diluted) and adjusted net earnings and net earnings per share
(diluted) is the exclusion of $789 million of tax cost and $0.26 per
share, respectively, on the repatriation of unremitted foreign
earnings associated with the American Jobs Creation Act of 2004.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions
Except Per Share Figures) TWELVE MONTHS
2005 2004
Percent
Percent Percent Increase
Amount to Sales Amount to Sales (Decrease)
Sales to customers $50,514 100.0 $47,348 100.0 6.7
Cost of products sold 13,954 27.6 13,422 28.4 4.0
Selling, marketing and
administrative expenses 16,877 33.4 15,860 33.5 6.4
Research expense 6,312 12.5 5,203 11.0 21.3
In-process research &
development 362 0.7 18 -
Interest (income)expense, net (433) (0.8) (8) -
Other (income)expense, net (214) (0.4) 15 -
Earnings before provision for
taxes on income 13,656 27.0 12,838 27.1 6.4
Provision for taxes on income 3,245 6.4 4,329 9.1 (25.0)
Net earnings $10,411 20.6 $8,509 18.0 22.4
Net earnings per share
(Diluted) $3.46 $2.84 21.8
Average shares outstanding
(Diluted) 3,012.5 3,003.5
Effective tax rate 23.8 % 33.7 %
Adjusted earnings before
provision for taxes and net
earnings
Earnings before
provision for taxes on
income $14,018(1) 27.7 $12,856(2) 27.2 9.0
Net earnings $10,545(1) 20.9 $9,310(2) 19.7 13.3
Net earnings per share
(Diluted) $3.50(1) $3.10(2) 12.9
Effective tax rate 24.8% 27.6%
(1) The difference between as reported earnings before provision for taxes
on income, net earnings and net earnings per share (diluted)
and adjusted earnings before provision for taxes on income, net
earnings and net earnings per share (diluted) is the exclusion of
IPR&D of $362 million, $359 million and $0.12 per share, respectively.
Adjusted net earnings and net earnings per share (diluted) also
exclude a tax gain of $225 million and $0.08 per share, respectively,
due to the reversal of a tax liability related to a technical
correction associated with the American Jobs Creation Act of 2004.
(2) The difference between as reported earnings before provision for taxes
on income and net earnings and adjusted earnings before provision for
taxes on income and net earnings is the exclusion of IPR&D of $18
million and $12 million, respectively. Adjusted net earnings and net
earnings per share (diluted) also exclude $789 million of tax cost
and $0.26 per share, respectively, on the repatriation of unremitted
foreign earnings associated with the American Jobs Creation Act of
2004.
First Call Analyst: FCMN Contact: phickey1@corus.jnj.com Company News On-Call: http://www.prnewswire.com/comp/467347.html Website: http://www.jnj.com/ |
Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.
Terms and conditions, including restrictions on
redistribution, apply.
Copyright © 1996-2003 PR Newswire Association LLC.
All Rights Reserved.
A United Business Media company.
