New lower forecast 2010 Johnson & Johnson
Posted by adminJohnson & Johnson Tuesday reported a quarterly revenue well below expectations and has revised downward its forecast of annual profit for the second time in a year due to repeated withdrawals from the market painkiller Tylenol and other group of drugs available without prescription.
By mid-session on Wall Street, the title of group care products and U.S. health yielded 2.59% to 58.02 dollars while the Dow Jones, including Johnson & Johnson is, retreated from 0 84%.
The company said in the wake of its results have received a subpoena from the attorney general's office in Philadelphia as part of its withdrawal, without saying more.
For their part, the federal prosecutor's office did not confirm or comment on this procedure.
Johnson & Johnson said that global sales of its consumer goods were down 5.4% over the second quarter to 3.6 billion dollars.
The sales performance was mainly affected by the withdrawal, on April 30 last, a forty drugs used in the treatment of benign childhood diseases.
This decision was taken following a report showing that U.S. health authorities these products had been contaminated by dust and dirt during their manufacture in the factory of J & J in Fort Washington (Pennsylvania), finally closed end April.
The withdrawal of the products involved have cut sales of approximately $ 200 million, said Chief Financial Officer Dominic Caruso during a conference call, adding that closing the plant in Fort Washington is likely to weigh up 600 million dollars in annual sales.
The total turnover of Johnson & Johnson has also been weighed down by a slowdown in sales growth of its medical tools and diagnostic instruments.
The turnover stood at 15.33 billion dollars (0.6%) while analysts on average expected 15.64 billion, according to Thomson Reuters I / B / E / S.
Net income rose to 3.45 billion dollars (2.68 billion euros), or $ 1.23 per share against 3.21 billion ($ 1.15 per share) a year ago.
Excluding items, J & J posted earnings per share of $ 1.21, a level consistent with the average forecast of analysts.
The group has now said it expects earnings per share of between 4.65 and $ 4.75 throughout the year against a previous estimate of 4.80 to 4.90 dollars.
To explain this further revision downward, Johnson & Johnson raised the closure of the plant, which is currently undergoing a costly up to standard, and the pressure existing in Europe on the prices of its prescription drugs .