Johnson & Johnson's revenue fell far short of Wall Street expectations and it cut its full-year profit forecast for the second time this year, citing repeated recalls of Tylenol and other consumer medicines.
J&J, whose shares fell 1.5 per cent, said global sales of consumer products fell 5.4 per cent in the second quarter to $3.6 billion. They were hurt by four major product recalls in the past year, and several smaller ones.
Sales were also hurt by the closure in late April of a plant in Pennsylvania, where 40 children's products ran afoul of FDA quality-control safeguards and were taken off the market.
Results were also hampered by a slowdown in sales growth for its medical devices and diagnostics. Device sales rose only 4.1 per cent in the second quarter, compared with the prior quarter's 12.5 per cent advance.
Growth was crimped because its Cypher heart stent lost ground to Abbott Laboratories more popular and newer Xience brand.
J&J earned $3.45 billion, or $1.23 per share, in the quarter. That compared with $3.21 billion, or $1.15 per share, a year earlier.
Excluding special items, J&J earned $1.21 per share, matching the average forecast of analysts.
J&J's global quarterly sales edged up 0.6 per cent to $15.33 billion, well below a forecast of $15.64 billion.
The company cut its full-year 2010 profit view to between $4.65 and $4.75 per share, from its forecast of $4.80 and $4.90 in April, when it also slightly cut its profit forecast.
J&J's shares were down 1.5 per cent to $58.65 in premarket trading. ]
Reuters