J&J second quarter sales stumble on domestic performance
Overall sales for the quarter were down 0.7 percent to $16.5bn, compared to the corresponding period last year, a figure that was impacted by negative currency translations and the fact that domestic sales for the period fell by 1.2 percent.
Net earnings also fell considerably, down from $2.78bn in the corresponding period last year, to $1.41bn this year, a figure that also reflected an after-tax special payment of $2.2bn related to research and development and acquisition costs.
Consumer products division hardest hit
The company, which is present in the pharmaceutical, and medical diagnostics area, as well as a consumer goods portfolio that mainly consists of personal care products, reported that the latter business division was hardest hit by the tough conditions.
Worldwide Consumer sales of $3.6 billion for the consumer division in the second quarter represented a decrease of 4.6 percent compared to the corresponding period last year, which included an operational increase of 0.6 per cent and a negative impact from currency of 5.2 per cent.
Breaking this figure down, domestic sales decreased 1.9 per cent, while international sales decreased 6.0 percent. The fall in overseas revenues reflected an operational increase of 2.0 percent, which was wiped out by a negative currency impact of 8.0 percent.
Oral care, baby care and Neutrogena raise the bar
The company said that positive contributions to its worldwide consumers were chiefly attributed to gains from international sales for some of specific categories, which included sales of oral care products and baby care products.
The results also showed that the Neutrogena brand reported increased sales both internationally and domestically, which defied the otherwise downward trend in the North America market.
In view of the success of the Neutrogena brand, overall skin care sales in the US market grew by 4.9 percent during the quarter, to reach $471m.