Johnson & Johnson has booked an 8.8% drop in sales for the second quarter to $17.8 billion, largely dragged down by currency effects (-7.9%) and a reduced contribution from its medical devices unit.
But the company still upped its 2015 profit forecast, on the back of expectation-beating net earnings of $4.5 billion and earnings per share of $1.61 for the quarter, compared to $4.3 billion, or $1.51 per share, a year ago.
Worldwide pharmaceutical sales came in at $7.9 billion, marking a 6.6% drop but masking operational growth of 1%. Strong performances by newer products such as Invokana/Invomet (canagliflozin) for type 2 diabetes, which pulled in $318 million, the bloodthinner Xarelto (rivaroxaban), bringing $472 million, and cancer drug Zytiga (abiraterone), with turnover of $648 million, helped bouy the result.
Worldwide consumer sales also grew organically, by 2.3%, only to be dragged down 9.3% by exchange rate effects, leaving an overall figure of $3.5 billion for the second quarter.
Revenues posted by the medical devices division came in a $6.4 billion for period, falling 12.2% because of an operational drop of 4.7% and a negative currency impact of 7.5%.
Its offering was primarily weakened by the absence of the Ortho-Clinical Diagnostics business, sold off to private equity firm The Carlyle Group for more than $4 billion in January last year, creating a hole which is yet to be filled.
Nevertheless, J&J chairman and chief executive Alex Gorsky remained upbeat, noting that the firm’s “sales and earnings results in the quarter reflect the strong underlying growth we’re seeing across the enterprise,” and that its “diverse portfolio and scale are enabling this performance”.
The company has raised its full-year profit forecast to $6.10-$6.20 per share from previous expectations of $6.04-$6.19.