New Brunswick, NJ
Sales: $6.6 billion
Sales:$6.6 billion for skin, oral and baby care products. Corporate sales: $61 billion. Net income: $10.5 billion.
Key Personnel:William C. Weldon, chairman and chief executive officer; Christine A. Poon, vice chairman; Colleen A. Goggins, worldwide chairman, consumer group.
Major Products:Aveeno skin care products, Clean & Clear teen skin care products, Johnson’s and Balmex baby care products, Johnson’s pH5.5 skin and hair care products, Neutrogena skin and hair care products, Penatan and Natusan baby care products, Piz Buin and Sundown sun care products, Reach toothbrushes, RoC skin care products, Shower to Shower personal care products.
New Products:Aveeno Positively Ageless anti-aging skin care line, ROC Retinol Correxion hand repair and Daily Microdermabrasion cleansing disks; Neutrogena Wave power cleanser and deep cleaning foaming pads, Neutrogena Healthy Skin Rejuvenator, Neutrogena Anti-Oxidant Age Reverse; Listerine Whitening quick dissolving strips, Listerine Defense anticavity fluoride rinse.
Comments:Corporate sales rose 14.6%, but net income declined 4.3%. Consumer product sales benefited from a full year of the Pfizer Consumer Healthcare unit, which J&J purchased for $16.6 billion in December, 2006. By division, skin care sales jumped nearly 16% to $3.1 billion. The company credited the gains to sun care, Clean & Clear, Aveeno and Neutrogena products. Last year, baby care sales rose nearly 14% to $2 billion, due to the success of the cleanser, hair care, lotion, cream, and powder product lines. Oral care sales surged more than 260% to $1.5 billion. The growth was due to new brands acquired from Pfizer, and the launch of Listerine mouthwashes and whitening strips. To boost sales further, last fall the company formed a new Office of Strategy and Growth to identify opportunities for future growth that are distinct from those being pursued by J&J’s existing businesses.
For the first quarter of 2008, sales rose 7.7% to $16.2 billion. On the consumer side, the gain was attributed, in part, to strong sales of Listerine mouthrinse and whitening products, baby care products, and Neutrogena, Clean & Clear and Aveeno skin care products.
In June, J&J said it expects its acquisition of Pfizer Consumer Health to break even or increase earnings modestly by 2009, a year earlier than expected. Colleen Goggins, worldwide chairwoman of J&J’s Consumer Group, told analysts that the integration of Pfizer Consumer Health is expected to result in cost savings of $500 million to $600 million in 2009.
Ms. Goggins said the company is still looking at possible acquisitions, albeit not on the scale of Pfizer Consumer Health.
“We still have an appetite for acquisitions,” Ms. Goggins said. “That being said, the PCH acquisition is really big and really complex and we’ve been really consumed with integrating it. I don't think we’ve got the appetite to do anything the size of PCH anytime soon.”
Last month, J&J (along with Google) was one of two U.S. companies to rank in the top 5 of the Most Respected Companies in the World, a list put together by Reputation Institute. Toyota was the No. 1 company on the list.