Johnson & Johnson Increases Sales Guidance; Plans Supply Chain Actions

(RTTNews) - Johnson & Johnson (JNJ) increased its sales guidance for the full-year 2018 to a range of $81.0 to $81.8 billion, reflecting expected operational growth in the range of 4.0% to 5.0%. The company reaffirmed its adjusted earnings guidance for full-year 2018 to a range of $8.00 to $8.20 per share, reflecting expected operational growth in the range of 6.8% to 9.6%.

Looking forward, Johnson & Johnson said it plans to implement actions across its global supply chain which will include expanding use of strategic collaborations, and bolstering initiatives to reduce complexity, improving cost-competitiveness, enhancing capabilities and optimizing network. The company said discussions regarding specific future actions are ongoing and are subject to all relevant consultation requirements before they are finalized. In total, the company expects these actions to generate approximately $0.6 to $0.8 billion in annual pre-tax cost savings that will be substantially delivered by 2022. The company expects to record pre-tax restructuring charges of approximately $1.9 to $2.3 billion, which will be treated as a special item.

Excluding after-tax intangible amortization expense and special items, first-quarter adjusted net earnings were $5.6 billion and adjusted earnings per share were $2.06, representing increases of 11.8% and 12.6%, respectively, as compared to the same period in 2017. On an operational basis, adjusted earnings per share increased 5.5%.

Johnson & Johnson reported sales of $20.0 billion for the first quarter of 2018, an increase of 12.6% as compared to the first quarter of 2017. Operational sales results increased 8.4% and the positive impact of currency was 4.2%. Domestic sales increased 6.1%. International sales increased 19.9%, reflecting operational growth of 10.9% and a positive currency impact of 9.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 4.3%, domestic sales increased 1.3% and international sales increased 7.6%.