Johnson & Johnson (J&J) has suffered a heavy setback during the fourth quarter ended December 2017 and it incurred a net loss of US$ 1,071 million on account of provision for special items and after-tax intangible amortization expenses as against a net profit of $381 million in the similar period of last year.
The company provided $1,327 million for provision for taxation during fourth quarter of 2017 as compared to $510 million in the last period. Earnings before taxation declined by 40.8 per cent to $2,560 million from $ 4,324 million in the previous year. Its sales increased by 11.5 per cent to $2,020 million from $1,811 million. Net earnings per share remained negative at $3.99 as against $1.38 in the last period.
Alex Gorsky, chairman and chief executive officer, said, “J&J delivered strong adjusted earnings per share growth of 8.5 per cent and total shareholder return of greater than 24 per cent in 2017, driven by the robust performance of our pharmaceutical business, while continuing to make investments in acquisitions, innovation and strategic partnerships to accelerate growth in each of our businesses.”
“As we enter 2018 and look beyond, we are experiencing an incredible pace of change in health care. J&J is uniquely positioned to lead during the dynamic era and deliver innovative solutions for patients and consumers that drive sustainable long-term growth,” he added.
For the full year ended December 2017, J&J posted growth of 6.3 per cent in worldwide sales to $76.5 billion from $71.9 billion in the previous year. Its US sales improved by 5.4 per cent to $39.9 billion from $37.8 billion. Its sales in Europe went up by 8.6 per cent to $17.1 billion from $15.8 billion and that in Asia-Pacific, Africa improved by 6.7 per cent $13.4 billion from $12.6 billion. Its sales in Western Hemisphere (excluding US) increased by 5.4 per cent to $6 billion from $5.7 billion.
J&J's Pharmaceutical sales during 2017 increased by 8.3 per cent to $36.3 billion from $33.5 billion in the previous year and that of medical devices segment improved by 5.9 per cent to $26.6 billion from $25.1 billion. The sales of consumer healthcare segment went up by only 2.2 per cent to $13.6 billion as against $13.3 billion in the previous year.
Among the pharmaceutical segment, sales of Immunology division increased by 2.3 per cent to $12.2 billion from $12 billion and the sales of oncology products moved up by 25 per cent to $7.3 billion from $5.8 billion. However, sales of neuroscience products declined by 1.6 per cent to $5.99 billion from $6.09 billion. Similarly, sales of cardiovascular & other declined by 1.7 per cent to $6.3 billion from $6.4 billion. The sales of company's leading product viz., Remicade declined by 9.3 per cent to $6.3 billion from $7 billion. The sales of Stelara increased by 24.1 per cent to $4 billion from $3.2 billion and that of Invega Sustenina/Xeplion/Trinza/Trevicta improved by 16 per cent to $2.6 billion from $2.2 billion in the previous year.
The net profit for the full year 2017 declined sharply by 92 per cent to $1,300 million from $16,540 million in the previous year. Its tax provision went up to $16,373 million from $3,263 million. Its profit before tax provision declined by 10.8 per cent to $17,673 million from $19,803 million. R&D expenditure increased by 16 per cent to $10,554 million from $9,095 million.
The company expects turnover of $81.4 billion for the current year reflecting expected operational growth in the range of 3.5 per cent to 4.5 per cent. It also announced adjusted earnings guidance for full-year 2018 of $8.20 per share.
The company provided $1,327 million for provision for taxation during fourth quarter of 2017 as compared to $510 million in the last period. Earnings before taxation declined by 40.8 per cent to $2,560 million from $ 4,324 million in the previous year. Its sales increased by 11.5 per cent to $2,020 million from $1,811 million. Net earnings per share remained negative at $3.99 as against $1.38 in the last period.
Alex Gorsky, chairman and chief executive officer, said, “J&J delivered strong adjusted earnings per share growth of 8.5 per cent and total shareholder return of greater than 24 per cent in 2017, driven by the robust performance of our pharmaceutical business, while continuing to make investments in acquisitions, innovation and strategic partnerships to accelerate growth in each of our businesses.”
“As we enter 2018 and look beyond, we are experiencing an incredible pace of change in health care. J&J is uniquely positioned to lead during the dynamic era and deliver innovative solutions for patients and consumers that drive sustainable long-term growth,” he added.
For the full year ended December 2017, J&J posted growth of 6.3 per cent in worldwide sales to $76.5 billion from $71.9 billion in the previous year. Its US sales improved by 5.4 per cent to $39.9 billion from $37.8 billion. Its sales in Europe went up by 8.6 per cent to $17.1 billion from $15.8 billion and that in Asia-Pacific, Africa improved by 6.7 per cent $13.4 billion from $12.6 billion. Its sales in Western Hemisphere (excluding US) increased by 5.4 per cent to $6 billion from $5.7 billion.
J&J's Pharmaceutical sales during 2017 increased by 8.3 per cent to $36.3 billion from $33.5 billion in the previous year and that of medical devices segment improved by 5.9 per cent to $26.6 billion from $25.1 billion. The sales of consumer healthcare segment went up by only 2.2 per cent to $13.6 billion as against $13.3 billion in the previous year.
Among the pharmaceutical segment, sales of Immunology division increased by 2.3 per cent to $12.2 billion from $12 billion and the sales of oncology products moved up by 25 per cent to $7.3 billion from $5.8 billion. However, sales of neuroscience products declined by 1.6 per cent to $5.99 billion from $6.09 billion. Similarly, sales of cardiovascular & other declined by 1.7 per cent to $6.3 billion from $6.4 billion. The sales of company's leading product viz., Remicade declined by 9.3 per cent to $6.3 billion from $7 billion. The sales of Stelara increased by 24.1 per cent to $4 billion from $3.2 billion and that of Invega Sustenina/Xeplion/Trinza/Trevicta improved by 16 per cent to $2.6 billion from $2.2 billion in the previous year.
The net profit for the full year 2017 declined sharply by 92 per cent to $1,300 million from $16,540 million in the previous year. Its tax provision went up to $16,373 million from $3,263 million. Its profit before tax provision declined by 10.8 per cent to $17,673 million from $19,803 million. R&D expenditure increased by 16 per cent to $10,554 million from $9,095 million.
The company expects turnover of $81.4 billion for the current year reflecting expected operational growth in the range of 3.5 per cent to 4.5 per cent. It also announced adjusted earnings guidance for full-year 2018 of $8.20 per share.