J&J posts strong results on consumer products growth
Turnover for the third quarter was up 6.4 percent to $15.9bn helped by a 9.4 percent increase in sales of consumer products.
Impact of Chinese cosmetics buy
Within the consumer division one of the key contributors to growth was Dabao, the moisturizer from China that joined the J&J stable as part of the recently completed acquisition of Beijing Dabao Cosmetics.
J&J also said strong contributions came from Listerine mouthwash, international sales of baby care products and the skin care lines of Neutrogena, Clean & Clear and Aveeno.
Pharmaceuticals failed to match the performance of consumer goods. Sales in the division grew 2.7 percent in the quarter and would have dropped had it not been for currency translation effects.
Commenting on the performance of the overall business, J&J CEO William C. Weldon, said: “Johnson & Johnson continues to achieve solid earnings results despite the impact that generic products have had on our pharmaceutical business.”
Looking at the profits side of the account reveals a positive picture with net earnings up 29.9 percent to $3.3bn.
Higher sales played their part in this result although restructuring costs last year gave the comparison figures a rosy tint.
Nevertheless, the figures were sufficiently good for the company to raise its full-year profit forecast to $4.50 - $4.53 per share, excluding one-time charges and other items.