Johnson & Johnson Q4 Profit Rises, But Sales Down

(RTTNews) - Healthcare and consumer products giant Johnson & Johnson (JNJ) reported a profit for the fourth-quarter 2015 that increased 27.5% from the prior year. Quarterly sales declined 2.4% from the prior year, but it was up 4.4% on operational basis.

"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business and iconic Consumer brands. As we enter 2016, our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in," said Alex Gorsky, Chairman and Chief Executive Officer.

The company announced its 2016 full-year guidance for sales of $70.8 billion to $71.5 billion reflecting expected operational growth in the range of 2.5% to 3.5%. Excluding the impact of acquisitions, divestitures and hepatitis C sales, operational sales growth is expected to be in the range of 4.5% to 6.0%.

Additionally, the company announced adjusted earnings guidance for full-year 2016 of $6.43 to $6.58 per share reflecting expected operational growth in the range of 5.3% to 7.7%.

Net earnings for the fourth quarter of 2015 increased to $3.22 billion or $1.15 per share, from $2.52 billion or $0.89 per share in the fourth-quarter 2014.

Fourth-quarter 2015 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.6 billion.

Fourth-quarter 2014 net earnings included after-tax intangible amortization expense of approximately $0.3 billion and a charge for after-tax special items of approximately $1.1 billion.

Adjusted net earnings for the quarter rose to $4.04 billion or $1.44 per share, from $3.89 billion or $1.37 per share in the prior year. On an operational basis, adjusted earnings per share increased 12.4% to $1.54 from the prior year.

Sales were $17.8 billion for the fourth quarter of 2015, a decrease of 2.4% as compared to the fourth quarter of 2014. Operational sales results increased 4.4% and the negative impact of currency was 6.8%. Domestic sales increased 8.0%.

International sales decreased 11.7%, reflecting operational growth of 1.2% and a negative currency impact of 12.9%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 7.8%, domestic sales increased 13.4% and international sales increased 2.9%.