Johnson & Johnson Increases Profit 19 Percent

Health care giant Johnson & Johnson posted a 19 percent increase in third-quarter profits on sharply higher sales of pharmaceutical products and medical devices. The maker of contact lenses, contraceptives and baby products said Tuesday that net income for the quarter ended Sept. 30 jumped to $1.82 billion, or 60 cents per share. That beat by a penny the consensus forecast of analysts surveyed by Thomson First Call.

A year earlier, net income was $1.53 billion, or 49 cents per share. Total sales reached $9.08 billion, up nearly 13 percent from $8.06 billion a year earlier. Sales of pharmaceutical products were up 17 percent domestically and 16.3 percent worldwide, to a total of $4.3 billion.

Sales of medical devices and diagnostic products increased 13.3 percent, to $3.14 billion, as all seven major segments of the business posted significantly higher sales. Only consumer product sales lagged, increasing just 3.2 percent to $1.66 billion, although skin care products such as Aveeno and Clean and Clear sold well.

Company officials said they are expecting earnings per share of $2.26 for all of 2002, up 1 cent from their prior guidance. For the first nine months of the year, net income was 16.3 percent higher at $5.31 billion, or $1.73 cents per share. That compares with net income in 2001's first three quarters of $4.56 billion, or $1.48 per share. Sales for the first nine months totaled $26.9 billion, up nearly 12 percent from $24.1 billion.

(Source: APBiscom)