Increased Neutrogena and skin care sales fail to boost J&J consumer segment
Worldwide skin care sales increased 1.2 percent to $843m, and baby care rose 5.7 percent to $537m, although sales of oral care products dropped 3.6 percent globally to $372m, suffering a particular decline in the US.
Although international sales in this segment increased 1.8 percent, domestic sales decreased 14.3 percent, the New Jersey-based company said.
The overall decline in sales was attributed to recalls of some over-the-counter medicines, the suspension of manufacturing at a healthcare plant linked to product quality issues and the economic situation in Venezuela.
Overall sales increase 0.6 percent
Overall sales (including the pharmaceutical segment) for the three month period increased 0.6 percent to $15.3bn, compared to $15.2bn in the prior year period.
Domestic sales fell 2.8 percent, while international sales climbed 4.1 percent, which the company said was down to an operational growth of 3 percent and positive currency impact of 1.1 percent.
Net earnings excluding special items increased 5.4 percent in the second quarter, coming in at $3.4bn.
“Our second quarter results include strong growth in a number of our recently launched products which contributed to solid earnings,” commented J&J chairman and CEO William C Weldon.
Future outlook
Despite Weldon remaining upbeat about future outlook saying: “we continue to make significant investments in acquisitions, strategic partnerships and in advancing our pipeline, positioning us well for future growth,” the company’s profit forecast for the full year 2010 was cut for the second time this year.
Earnings guidance was updated to $4.65-$4.75 per share, excluding special items, from the previous figure of $4.80-$4.90 announced in April, in order to take into account the product recalls, manufacturing issues and unfavorable changes in exchange rates, the company said.
