Johnson & Johnson has suffered a setback during the fourth quarter ended December 2014 mainly on account of a charge for after-tax special items related to an increase in the litigation accrual, integration costs related to the acquisition of Synthes, Inc., and an in-process R&D charge. Its net profit declined by 28 per cent to US$ 2,521 million from $3,519 million in the corresponding period of last year. The company provided $182 million for taxation as against earnings of $769 million in the last period. Its net sales declined by 0.6 per cent to $18,254 million from $18,355 million.
Its pharmaceutical sales improved by 9.6 per to $7,999 million from $7,296 million and that of medical Devices declined by 9 per cent to $6,649 million from $7,306 million. The sales of consumer healthcare also declined by 3.9 per cent to $3,606 million from $3,753 million. Its domestic sales in US improved by 7.4 per cent to $8,604 million from $8,014 million and that in international market declined by 6.7 per cent to $9,650 million from $10,341 million.
Worldwide sales for the full-year 2014 improved by 4.2 per cent to $74.3 million from $71.3 million in the previous year. Its US sales improved by 9 per cent to $34.8 billion from $31,9 million and international sales improved slightly by 0.4 per cent to $39.5 billion from $39.4 billion. Its pharmaceutical sales moved up strongly by 14.9 per cent to $32.2 billion from $28.1 billion. However, the sales of medical devices division declined by 3.4 per cent to $27.5 billion from $28.5 billion. The divestiture of the ortho-clinical diagnostics business was completed in June. Similarly, the sales of consumer division declined by 1.4 per cent to $14.5 billion from $14,7 billion. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 8.0%, domestic sales increased 11.6% and international sales increased 5.1%.
Alex Gorsky, chairman and CEO, said, “2014 was a strong year for Johnson & Johnson, as we delivered solid financial results while continuing to make investments to accelerate growth for the long term. We have built significant momentum in our pharmaceutical business, are realizing the benefits of innovation, scale and breadth in our medical devices business and are continuing our market leadership with iconic brands in our consumer business. I am proud of our exceptional Johnson & Johnson colleagues who make our success possible with their commitment to advancing health and well-being for patients and consumers around the world.”
The company announced adjusted earnings guidance for full-year 2015 of $6.12 to $6.27 per share. Beginning in 2015, adjusted earnings excludes after-tax intangible amortization expense in addition to special items. After-tax intangible amortization expense for 2014 was approximately $0.42 per share and for 2015 is anticipated to be approximately $0.32 per share.
Positive contributors to operational results were sales of Tylenol and Motrin analgesics and Zyrtec allergy over-the-counter products; Aveeno and Neutrogena skin care products; and Listerine oral care products.
The strong sales results were driven by new products and the strength of our core products. New products include Olysio/Sovriad (simeprevir), for combination treatment of chronic hepatitis C in adult patients; Xarelto (rivaroxaban), an oral anticoagulant; Zytiga (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer; Invokana (canagliflozin), for the treatment of adults with type 2 diabetes; and Imbruvica (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, or blood cancers.
Additional contributors to operational sales growth were Stelara (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis; Invega Sustenna/Xeplion (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the treatment of schizophrenia in adults; Simponi/Simponi Aria (golimumab) and Remicade (infliximab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases.