J&J reports 12.5% profit rise in Q1 2012 despite sales decline

American health and baby care products company Johnson & Johnson (J&J) has reported that its first quarter 2012 profit has increased by 12.5% to $3.91bn compared to $3.48bn in the same period last year.

The noted profit was triggered by the foreign exchange gain due to to its pending acquisition of Synthes and lower spending, the company said.

J&J posted sales of $16.1bn for Q1, down 0.2%, as compared to the same period of 2011, and domestic sales fell by 5.1%. However, the international sales increased by 4.1%.

The sales decline was mainly due to the drug patent expirations and manufacturing constraints, the company said.

J&J stated the sales of the US over-the-counter (OTC) was significantly impacted owing to the manufacturing suspension at its McNeil Consumer Healthcare facility.

However, the company added that its non-prescription drugs including Tylenol, Motrin, which were to return to the market in mid-2012, will only hit the shelves in 2013 due to the higher than expected expenses to rebuild factory and for regulatory inspections across all its factories.