Negative impact of stronger dollar leads to decline in J&J Q2 sales

Global pharmaceutical and consumer products company Johnson & Johnson (J&J) reported gross sales of $16.5bn for the second quarter of 2012, a decline of 0.7%, compared to the corresponding period last year.

The American company cited the impact of stronger dollar and tough market conditions in the US as the reasons for the decline in domestic sales during the Q2 2012 period.

Net earnings, which include after-tax special items of $2.2bn comprising non-cash charges for research and development and acquiring costs, fell to $1.41bn for the Q2 period, as compared to the $2.78bn during the same time last year.

The company said that its consumer business division was hardest hit owing to the tough conditions; and reported $3.6bn consumer sales for the quarter, representing a 4.6% decline versus corresponding period for the prior year, which included operational increase of 0.6% and a negative impact from currency of 5.2%.

J&J said that the domestic sales reduced by 1.9%, while international sales declined by 6%, reflecting an operational increase of 2% and negative currency impact of 8%.

The company said that the positive contributors to operational results were international sales of oral care products, Neutrogena skin care products and international baby care products.

Neutrogena brand noted rise in international and domestic sales, which otherwise resisted the downward trend in the North American market.

J&J said that the skin care sales in the US increased by 4.9% to $471m for the quarter.