Johnson & Johnson (J&J) has received a setback during the first quarter ended March 2007 and its net earnings declined by 22.1 per cent to $2,573 million from $3,305 million in the corresponding period of last year mainly due to provision for special items. Without special items, the net earnings worked out to $3.4 billion. The company's sales, however, increased by 15.7 per cent to $15,037 million from $12,992 million. With sharp fall in profits, its earning per share came down to $0.88 from $1.10.

J&J has recorded US sales of $8,247 million in the first quarter of 2007 as compared to $7,371 million in the similar period of last year, a growth of 11.9 per cent. Its sales in Europe improved by 24.1 per cent to $3,812 million. Pharmaceutical sales increased by 10.6 per cent to $6,221 million from $5,626 million. Sales growth reflects the strong performance of Topamax, an antiepileptic and a treatment for the prevention of migraine headaches; and Levaquin, Risperdal, Risperdal, Consta and Invega.

"Our solid first-quarter results demonstrate the strength of our broadly-based businesses, especially the strong performance of our pharmaceutical business," said William C Weldon, chairman and CEO. "We are delighted to add the Pfizer Consumer Healthcare and Conor Medsystems businesses to the J&J family of companies. Our strategy of being broadly-based continues to serve us well and is one of the keys to our consistent long term performance."

Worldwide Medical Devices and Diagnostics sales of $5.3 billion for the first quarter represented a 6.2 per cent increase over the prior year with operational growth of 3.7 per cent.