Johnson & Johnson has unveiled its Q3 results, announcing sales of $17.6 billion, an increase of 3.1% as compared to the third quarter of 2012 after accounting for a 1.6% currency loss. But while its pharma businesses look like they’re enjoying the party, sales and income in the medical device businesses are suffering a bit of a hangover.
Medical devices deliver roughly 40% of J&J’s sales, and to be honest this is the bit we’re interested in.
Q3 Worldwide Medical Devices and Diagnostics sales of $6.9 billion represented a decrease of 2.0% versus the prior year, although most of that was currency losses of 2.3% on an operational increase of 0.3%. Domestic sales slumped by 4.2% however, with International sales decreasing 0.1% after accounting for a significant negative currency impact of 4.3% on what looked like healthy sales.
J&J says primary contributors to operational growth where it did occur were sales from Biosense Webster’s electrophysiology products in the Cardiovascular Care business; joint reconstruction products in the Orthopaedics business; international sales in the Surgical Care business; and biosurgical and international sales of energy products in the Specialty Surgery business.
On earnings, the picture is somewhat clouded by further accruals for ongoing litigation expenses including the Depuy ASR all metal hip situation. Add to that the ongoing integration and transaction costs associated with the Synthes acquisition.
Exclude the special items and net earnings for the current quarter were $3.9 billion, representing an increases of 11.3% compared to the same period a year ago ($3.5 billion). Include the special items and the headline figure drops to $3.0 billion.
Excluding the impact of special items, J&J increased its earnings guidance for full-year 2013 to $5.44 – $5.49 per share.
“Our third-quarter results reflect the solid, demonstrable results in achieving our near-term priorities while also advancing our longer term strategic growth drivers,” said Alex Gorsky, Chairman and Chief Executive Officer. “Our key products and successful new product launches delivered strong growth. We continue to progress our pipelines with a number of regulatory approvals, the submission of new drug applications, and execution of strategic collaborations. Our investments further strengthen our ability to deliver sustainable growth and bring meaningful innovations to patients and consumers.”
Source: Johnson & Johnson