Johnson & Johnson Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year of 2012; Provides Earnings Guidance for the Year 2013
January 22, 2013 at 07:45 am
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Johnson & Johnson announced unaudited consolidated earnings results for the fourth quarter and full year of 2012. For the quarter, the company reported sales customers of $17,558 million, earnings before provision for taxes on income of $3,100 million, net earnings of $2,567 million and net earnings attributable to company of $2,567 million or $0.91 per diluted share compared to sales customers of $16,255 million, earnings before provision for taxes on income of $318 million, net earnings of $218 million and net earnings attributable to company of $218 million or $0.08 per diluted share a year ago period. Adjusted earnings before provision for taxes on income was $4,115 million and adjusted net earnings attributable to company was $3,376 million or $1.19 per diluted share compared to adjusted earnings before provision for taxes on income of $3,657 million and adjusted net earnings attributable to company of $3,129 million or $1.13 per diluted share a year ago period. Operational results increased 9.3% and the negative impact of currency was 1.3%.
For the full year, the company reported sales customers of $67,224 million, earnings before provision for taxes on income of $13,775 million, net earnings of $10,514 million and net earnings attributable to company of $10,853 million or $3.86 per diluted share compared to sales customers of $65,030 million, earnings before provision for taxes on income of $12,361 million, net earnings of $9,672 million and net earnings attributable to company of $9,672 million or $3.49 per diluted share a year ago period. Adjusted earnings before provision for taxes on income was $18,214 million and adjusted net earnings attributable to company was $14,345 million or $5.10 per diluted share compared to adjusted earnings before provision for taxes on income of $17,353 million and adjusted net earnings attributable to company of $13,867 million or $5.00 per diluted share a year ago period. The company also generated significant free cash flow of approximately $12.5 billion. Sales for the full-year 2012 included the impact of the recently completed acquisition of Synthes Inc., which contributed 3.1% to worldwide operational sales growth, net of the divestiture of the DePuy trauma business.
The company provided earnings guidance for the year 2013. For the year, the company expects earnings of $5.35 to $5.45 per share, which excludes the impact of special items. The company suggests that model effective tax rate for 2013 at approximately 20%. This effective tax rate for 2013 includes the federal R&D tax credit renewed by Congress under the American Taxpayer Relief Act for both 2012 and 2013. This would result in sales for 2013 on a constant currency basis of approximately $70.7 billion to $71.4 billion.
Johnson & Johnson is one of the world's leading producers of healthcare products. Net sales break down by family of products as follows:
- pharmaceutical products (55.4%): drugs intended for the treatment of cardiovascular diseases, oncological diseases, gastro-intestinal illnesses, infectious, immunological, neurological, dermatological diseases, etc.;
- medical products and equipment (28.9%): diagnostic systems, orthopedic and gynecological equipment, surgical materials, etc. for use by healthcare professionals;
- consumer health products (15.7%): OTC drugs (Tylenol, Sudafed, Benadryl, Zyrtec, Motrin, Nicorette and other brands), health and beauty products (Aveeno, Clean & Clear, Dr. CI:Labo, Neutrogena and OGX), baby care products (Johnson's and Aveeno Baby), oral care products (Listerine), feminine hygiene products (Stayfree and Carefree and o.b.), wound care products (Band-Aid and Neosporin) etc.
At the end of 2022, Johnson & Johnson has 89 manufacturing facilities located in the United States (28), North America (9), Europe (27), Africa and Asia/Pacific (25).
Net sales are distributed geographically as follows: the United States (51.2%), Europe (24.7%), Asia/Pacific and Africa (17.7%) and other (6.4%).
Johnson & Johnson Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year of 2012; Provides Earnings Guidance for the Year 2013