Stronger dollar hurts J&J's quarterly sales

Tue Jan 20, 2015 9:15am EST
 
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(Reuters) - Johnson & Johnson reported lower-than-expected quarterly sales as a stronger dollar offset higher sales of the Band-Aid maker's new drugs and older treatments.

The company's international sales fell about 7 percent to $9.65 billion in the fourth quarter, accounting for about half of its total sales.

The dollar gained nearly 13 percent against a basket of major currencies in 2014, its strongest performance since 1997.

Revenue in J&J's pharmaceuticals business rose 9.6 percent in the quarter, driven by higher sales of new drugs such as hepatitis C drug Olysio and older treatments such as psoriasis drug Stelara. The business accounts for about 44 percent of the company's total sales.

However, sales in J&J's medical devices business, its second largest, fell 9 percent.

The company's net profit fell about 28 percent to $2.52 billion, or 89 cents per share, including a $1.1 billion charge related to its acquisition of Synthes Inc.

Excluding items, J&J earned $1.27 per share.

Total sales fell 0.6 percent to $18.25 billion.

Analysts on average had expected a profit of $1.26 per share and revenue of $18.55 billion, according to Thomson Reuters I/B/E/S.   Continued...

 
Products made by Johnson & Johnson for sale on a store shelf in Westminster, Colorado April 14, 2009. J  REUTERS/Rick Wilking