J&J’s Second Quarter Sales Up 10.9%

Johnson & Johnson (J&J), New Brunswick, NJ, announced record sales of $9.1 billion, an increase of 10.9% over second-quarter 2001 results. Excluding the impact of currency, worldwide sales increased 10.7%. Domestic sales increased 10.7%, while international sales increased 11.3%.

J&J also announced net earnings for the second quarter were $1.7 billion, an increase of 11.6%. After-tax special charges of $189 million in 2002 include in-process R&D costs associated with the acquisitions of Tibotec-Virco and Obtech Medical AG that were completed during the quarter. An after-tax special charge of $102 million in 2001 was due to one-time costs associated with the Alza merger.

“Our double-digit growth in sales and earnings reflects the broad-based strength of each of our business segments in all geographic regions of the world,” said William C. Weldon, chairman and chief executive officer. “Of particular note is the strong performance of the worldwide medical devices and diagnostics business as well as the international pharmaceutical and domestic consumer businesses.”

Worldwide consumer sales for the second quarter of 2002 were $1.6 billion, an increase of 7.8% versus the same period a year ago. Domestic sales increased by 12.4% while international sales gains were 2.6%. Consumer sales achieved strong growth in skin care products (Neutrogena, Clean & Clear and Aveeno), McNeil Consumer’s over-the-counter analgesic, upper respiratory and anti-diarrheal products and McNeil Nutritional’s Splenda sweetener products.

On Feb. 13, J&J announced a stock repurchase program of up to $5 billion worth of the corporation’s common stock. Through the end of the second quarter, the company has completed $4.3 billion of the repurchase program.