Johnson & Johnson Reports 2013 First-Quarter Results:

Sales of $17.5 Billion Increased 8.5% Versus 2012 First Quarter; First-Quarter EPS was $1.22 Excluding Special Items, 2013 First-Quarter EPS of $1.44 Increased 5.1%*

News provided by

Johnson & Johnson

Apr 16, 2013, 07:45 ET

NEW BRUNSWICK, N.J., April 16, 2013 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $17.5 billion for the first quarter of 2013, an increase of 8.5% as compared to the first quarter of 2012. Operational results increased 9.8% and the negative impact of currency was 1.3%. Domestic sales increased 11.2%. International sales increased 6.3%, reflecting operational growth of 8.7% and a negative currency impact of 2.4%. Sales included the impact of the acquisition of Synthes, Inc., net of the divestiture of the DePuy trauma business, which contributed 5.7% to worldwide operational sales growth.

Net earnings and diluted earnings per share for the first quarter of 2013 were $3.5 billion and $1.22, respectively. First quarter 2013 net earnings included after-tax special items of approximately $0.6 billion, primarily related to litigation expenses, as well as integration and transaction costs related to the acquisition of Synthes, Inc. First quarter 2012 net earnings included a gain from an after-tax special item of approximately $0.1 billion as shown in the accompanying reconciliation of non-GAAP financial measures. Excluding these special items, net earnings for the current quarter were $4.1 billion and diluted earnings per share were $1.44, representing increases of 8.0% and 5.1%, respectively, as compared to the same period in 2012.*

"We delivered solid first quarter results led by the success of many of our recently launched pharmaceutical products and the addition of Synthes to our orthopaedics business. Also of note is the growth in our over-the-counter medicines business as we continue to make progress in returning a reliable supply of high quality products to our customers," said Alex Gorsky, Chairman and Chief Executive Officer. "Our investments to advance our pipelines and expand our global presence, along with the outstanding efforts of our talented people, will enable us to continue to deliver sustainable growth and meaningful innovations to patients and customers around the world."

The Company confirmed its earnings guidance for full-year 2013 of $5.35 - $5.45 per share. The Company's guidance excludes the impact of special items.

Worldwide Consumer sales of $3.7 billion for the first quarter represented an increase of 2.2% versus the prior year consisting of an operational increase of 3.3% and a negative impact from currency of 1.1%. Domestic sales increased 2.4%. International sales increased 2.1%, which reflected an operational increase of 3.8% and a negative currency impact of 1.7%.

Positive contributors to operational results were TYLENOL^® and MOTRIN^® analgesics and upper respiratory over-the-counter medicines; baby care products; LISTERINE^® mouthwash; and NEUTROGENA^® skin care products. During the quarter, Johnson & Johnson (China) Investment Co., Ltd. completed the acquisition of Shanghai Elsker Mother & Baby Co., Ltd, a well regarded baby care company in China, known for its position in the naturals segment.

Worldwide Pharmaceutical sales of $6.8 billion for the first quarter represented an increase of 10.4% versus the prior year with operational growth of 11.4% and a negative impact from currency of 1.0%. Domestic sales increased 14.7%. International sales increased 6.1% which reflected an operational increase of 8.1% and a negative currency impact of 2.0%.

Primary contributors to operational sales growth were INVEGA^® SUSTENNA^®/XEPLION^® (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the acute and maintenance treatment of schizophrenia in adults; STELARA^® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; SIMPONI^®(golimumab), a biologic approved to treat adults with moderate-to-severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; REMICADE^® (infliximab), a biologic approved for the treatment of a number of immune-mediated-inflammatory diseases; PREZISTA^® (darunavir), a treatment for HIV; and sales of recently launched products.

The strong sales results of recently launched products included ZYTIGA^® (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer; XARELTO^® (rivaroxaban), an oral anticoagulant; and INCIVO^® (telaprevir), a direct-acting antiviral protease inhibitor, for the treatment of genotype-1 chronic hepatitis C virus.

During the quarter, the U.S. Food and Drug Administration (FDA) approved INVOKANA™ (canagliflozin) for the treatment of adults with type 2 diabetes. INVOKANA™ is the first in a new class of medications called sodium glucose co-transporter 2 (SGLT2) inhibitors to be approved in the United States. In addition, a Marketing Authorization Application was submitted to the European Medicines Agency seeking approval for a fixed-dose therapy combining canagliflozin and immediate release metformin to treat adult patients with type 2 diabetes.

Also in the quarter, a New Drug Application was submitted to the FDA, as well as regulatory health authorities in Japan, seeking approval for simeprevir (TMC435), an investigational NS3/4A protease inhibitor, for the treatment of genotype 1 chronic hepatitis C in adult patients. In addition, the FDA granted Breakthrough Therapy Designations for the investigational oral agent ibrutinib as a monotherapy for three B-cell malignancies: in patients with relapsed or refractory mantle cell lymphoma who have received prior therapy; in patients with Waldenstrom's macroglobulinemia; and in patients with chronic lymphocytic leukemia or small lymphocytic lymphoma with deletion of the short arm of chromosome 17. Ibrutinib is jointly being developed by Janssen Research & Development, LLC and Pharmacyclics Inc.

Worldwide Medical Devices and Diagnostics sales of $7.1 billion for the first quarter represented an increase of 10.2% versus the prior year consisting of an operational increase of 11.9% and a negative currency impact of 1.7%. Domestic sales increased 11.4%. International sales increased 9.1%, which reflected an operational increase of 12.2% and a negative currency impact of 3.1%. Sales included the impact of the acquisition of Synthes, Inc., which contributed approximately 14%, 17% and 12% to worldwide, domestic and international operational sales growth, respectively, net of the divestiture of the DePuy trauma business.

Primary contributors to operational growth were sales from the acquisition of Synthes, Inc., in the Orthopaedics business; Biosense Webster's electrophysiology and Cordis' endovascular products in the Cardiovascular Care business; Vision Care's 1-Day ACUVUE^®TRUEYE and 1-Day ACUVUE^® MOIST^® disposable contact lenses; biosurgical and international sales of energy products in the Specialty Surgery business; and the donor screening and clinical laboratories products in the Diagnostics business in the U.S.

During the quarter, 510(k) clearance was received from the FDA for the ENSEAL^® G2 Articulating Tissue Sealer, the first articulating advanced energy device designed to allow surgeons to take a perpendicular approach to seal vessels, as well as the ENSEAL^® G2 Cordless Tissue Sealer Device, a first of its kind self-contained device that includes both a generator and power source.

About Johnson & Johnson
Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 128,000 employees at more than 275 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Net earnings and diluted earnings per share excluding special items are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the financial schedules accompanying this press release and can be found in the Investor Relations section of the Company's website at www.investor.jnj.com.

Johnson & Johnson will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the meeting for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliation of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including a pharmaceutical pipeline of selected compounds in late stage development can be found on the Company's website at www.jnj.com.

NOTE TO INVESTORS

(This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to, general industry conditions and competition; economic factors, such as interest rate and currency exchange rate fluctuations; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; challenges to patents; significant adverse litigation or government action; impact of business combinations; financial distress and bankruptcies experienced by significant customers and suppliers; changes to governmental laws and regulations and domestic and foreign health care reforms; trends toward health care cost containment; increased scrutiny of the health care industry by government agencies; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and sovereign risk; disruptions due to natural disasters; manufacturing difficulties or delays; complex global supply chains with increasing regulatory requirements; and product efficacy or safety concerns resulting in product recalls or regulatory action. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 30, 2012. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.investor.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments.)

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FIRST QUARTER
			Percent Change
	2013	2012	Total		Operations	Currency
Sales to customers by
segment of business

Consumer
U.S.	$ 1,348	1,316	2.4	%	2.4	-
International	2,327	2,279	2.1		3.8	(1.7)
	3,675	3,595	2.2		3.3	(1.1)

Pharmaceutical
U.S.	3,471	3,026	14.7		14.7	-
International	3,297	3,107	6.1		8.1	(2.0)
	6,768	6,133	10.4		11.4	(1.0)

Med Devices & Diagnostics
U.S.	3,206	2,877	11.4		11.4	-
International	3,856	3,534	9.1		12.2	(3.1)
	7,062	6,411	10.2		11.9	(1.7)

U.S.	8,025	7,219	11.2		11.2	-
International	9,480	8,920	6.3		8.7	(2.4)
Worldwide	$ 17,505	16,139	8.5	%	9.8	(1.3)

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FIRST QUARTER
			Percent Change
	2013	2012	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 8,025	7,219	11.2	%	11.2	-

Europe	4,481	4,194	6.8		6.2	0.6
Western Hemisphere excluding U.S.	1,783	1,714	4.0		9.1	(5.1)
Asia-Pacific, Africa	3,216	3,012	6.8		11.8	(5.0)
International	9,480	8,920	6.3		8.7	(2.4)

Worldwide	$ 17,505	16,139	8.5	%	9.8	(1.3)

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	FIRST QUARTER

	2013			2012			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 17,505		100.0	$ 16,139		100.0	8.5
Cost of products sold	5,554		31.7	4,915		30.4	13.0
Selling, marketing and administrative expenses	5,223		29.8	5,015		31.1	4.1
Research and development expense	1,784		10.2	1,645		10.2	8.4
In-process research and development	64		0.4	-		-
Interest (income) expense, net	104		0.6	130		0.8
Other (income) expense, net	515		3.0	(611)		(3.8)
Earnings before provision for taxes on income	4,261		24.3	5,045		31.3	(15.5)
Provision for taxes on income	764		4.3	1,135		7.1	(32.7)
Net earnings	3,497		20.0	3,910		24.2	(10.6)

Net earnings per share (Diluted)	$ 1.22			$ 1.41			(13.5)

Average shares outstanding (Diluted)	2,858.8			2,774.9

Effective tax rate	17.9	%		22.5	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 5,070		29.0	$ 4,928		30.5	2.9
Net earnings	$ 4,107		23.5	$ 3,804		23.6	8.0
Net earnings per share (Diluted)	$ 1.44			$ 1.37			5.1
Effective tax rate	19.0	%		22.8	%

⁽¹⁾See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures

	First Quarter		% Incr. /
(Dollars in Millions Except Per Share Data)	2013	2012	(Decr.)

Earnings before provision for taxes on income - as reported	$ 4,261	5,045	(15.5)	%

Litigation expenses	529	-

Synthes integration/transaction costs and currency related	258	(117)

In-process research and development	64	-

Other	(42)	-

Earnings before provision for taxes on income - as adjusted	$ 5,070	4,928	2.9	%

Net Earnings - as reported	$ 3,497	3,910	(10.6)	%

Litigation expenses	391	-

Synthes integration/transaction costs and currency related	183	(106)

In-process research and development	42	-

Other	(6)	-

Net Earnings - as adjusted	$ 4,107	3,804	8.0	%

Diluted Net Earnings per share - as reported	$ 1.22	1.41	(13.5)	%

Litigation expenses	0.14	-

Synthes integration/transaction costs and currency related	0.06	(0.04)

In-process research and development	0.02	-

Other	-	-

Diluted Net Earnings per share - as adjusted	$ 1.44	1.37	5.1	%


The Company believes investors gain additional perspective of underlying business trends and results by providing a
measure of earnings before provision for taxes on income, net earnings and diluted net earnings per share that excludes
special items in order to evaluate ongoing business operations.

		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
				% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency
CONSUMER SEGMENT ⁽²⁾
BABY CARE
US		$ 103	99	4.0%	4.0%	-
Intl		461	441	4.5%	7.7%	-3.2%
WW		564	540	4.4%	7.0%	-2.6%
ORAL CARE
US		158	155	1.9%	1.9%	-
Intl		245	232	5.6%	7.3%	-1.7%
WW		403	387	4.1%	5.1%	-1.0%
OTC/NUTRITIONALS
US		436	381	14.4%	14.4%	-
Intl		747	723	3.3%	3.9%	-0.6%
WW		1,183	1,104	7.2%	7.6%	-0.4%
SKIN CARE
US		453	453	0.0%	0.0%	-
Intl		449	454	-1.1%	-0.4%	-0.7%
WW		902	907	-0.6%	-0.2%	-0.4%
WOMEN'S HEALTH
US		81	93	-12.9%	-12.9%	-
Intl		320	316	1.3%	4.9%	-3.6%
WW		401	409	-2.0%	0.8%	-2.8%
WOUND CARE/OTHER
US		117	135	-13.3%	-13.3%	-
Intl		105	113	-7.1%	-6.1%	-1.0%
WW		222	248	-10.5%	-10.0%	-0.5%

TOTAL CONSUMER
US		1,348	1,316	2.4%	2.4%	-
Intl		2,327	2,279	2.1%	3.8%	-1.7%
WW		$ 3,675	3,595	2.2%	3.3%	-1.1%


See footnotes at end of schedule



		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
				% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency
PHARMACEUTICAL SEGMENT ^{(2) (4)}
IMMUNOLOGY
US		$ 1,639	1,453	12.8%	12.8%	-
Intl		565	442	27.8%	30.1%	-2.3%
WW		2,204	1,895	16.3%	16.8%	-0.5%
REMICADE
US		970	882	10.0%	10.0%	-
US Exports ⁽³⁾		349	378	-7.7%	-7.7%	-
Intl		281	261	7.7%	9.5%	-1.8%
WW		1,600	1,521	5.2%	5.5%	-0.3%
SIMPONI
US		94	64	46.9%	46.9%	-
Intl		143	52	*	*	-3.3%
WW		237	116	*	*	-2.0%
STELARA
US		226	129	75.2%	75.2%	-
Intl		120	92	30.4%	31.2%	-0.8%
WW		346	221	56.6%	57.0%	-0.4%
OTHER IMMUNOLOGY
US		-	-	-	-	-
Intl		21	37	-43.2%	-42.9%	-0.3%
WW		21	37	-43.2%	-42.9%	-0.3%
INFECTIOUS DISEASES
US		238	242	-1.7%	-1.7%	-
Intl		577	513	12.5%	13.5%	-1.0%
WW		815	755	7.9%	8.6%	-0.7%
INCIVO
US		-	-	-	-	-
Intl		162	132	22.7%	24.9%	-2.2%
WW		162	132	22.7%	24.9%	-2.2%
INTELENCE
US		47	43	9.3%	9.3%	-
Intl		42	37	13.5%	14.1%	-0.6%
WW		89	80	11.3%	11.6%	-0.3%
PREZISTA
US		167	160	4.4%	4.4%	-
Intl		200	164	22.0%	22.3%	-0.3%
WW		367	324	13.3%	13.5%	-0.2%
OTHER INFECTIOUS DISEASES
US		24	39	-38.5%	-38.5%	-
Intl		173	180	-3.9%	-3.0%	-0.9%
WW		197	219	-10.0%	-9.3%	-0.7%


		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
				% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency

NEUROSCIENCE
US		746	674	10.7%	10.7%	-
Intl		998	973	2.6%	5.6%	-3.0%
WW		1,744	1,647	5.9%	7.7%	-1.8%
CONCERTA/METHYLPHENIDATE
US		139	197	-29.4%	-29.4%	-
Intl		117	111	5.4%	6.8%	-1.4%
WW		256	308	-16.9%	-16.4%	-0.5%
INVEGA
US		71	69	2.9%	2.9%	-
Intl		61	52	17.3%	22.0%	-4.7%
WW		132	121	9.1%	11.1%	-2.0%
INVEGA SUSTENNA/ XEPLION
US		164	100	64.0%	64.0%	-
Intl		120	61	96.7%	96.0%	0.7%
WW		284	161	76.4%	76.1%	0.3%
RISPERDAL CONSTA
US		106	113	-6.2%	-6.2%	-
Intl		229	248	-7.7%	-6.0%	-1.7%
WW		335	361	-7.2%	-6.0%	-1.2%
OTHER NEUROSCIENCE
US		266	195	36.4%	36.4%	-
Intl		471	501	-6.0%	-1.8%	-4.2%
WW		737	696	5.9%	8.9%	-3.0%
ONCOLOGY
US		199	107	86.0%	86.0%	-
Intl		595	489	21.7%	23.9%	-2.2%
WW		794	596	33.2%	35.0%	-1.8%
VELCADE
US		-	-	-	-	-
Intl		353	353	0.0%	2.5%	-2.5%
WW		353	353	0.0%	2.5%	-2.5%
ZYTIGA
US		161	100	61.0%	61.0%	-
Intl		183	100	83.0%	83.4%	-0.4%
WW		344	200	72.0%	72.2%	-0.2%
OTHER ONCOLOGY
US		38	7	*	*	-
Intl		59	36	63.9%	68.7%	-4.8%
WW		97	43	*	*	-4.0%




		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
				% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency
TOTAL OTHER
US		649	550	18.0%	18.0%	-
Intl		562	690	-18.6%	-17.5%	-1.1%
WW		1,211	1,240	-2.3%	-1.7%	-0.6%
ACIPHEX/PARIET
US		103	96	7.3%	7.3%	-
Intl		49	126	-61.1%	-60.5%	-0.6%
WW		152	222	-31.5%	-31.2%	-0.3%
PROCRIT/EPREX
US		233	204	14.2%	14.2%	-
Intl		145	172	-15.7%	-15.8%	0.1%
WW		378	376	0.5%	0.5%	0.0%
XARELTO
US		158	27	*	*	-
Intl		-	-	-	-	-
WW		158	27	*	*	-
OTHER
US		155	223	-30.5%	-30.5%	-
Intl		368	392	-6.1%	-4.4%	-1.7%
WW		523	615	-15.0%	-13.9%	-1.1%

TOTAL PHARMACEUTICAL
US		3,471	3,026	14.7%	14.7%	-
Intl		3,297	3,107	6.1%	8.1%	-2.0%
WW		$ 6,768	6,133	10.4%	11.4%	-1.0%


Supplemental Sales Information
		2012
		Q1	Q2	Q3	Q4	Full Year
INCIVO
US		-	-	-	-	-
Intl		132	102	71	138	443
WW		132	102	71	138	443

XARELTO
US		27	49	68	95	239
Intl		-	-	-	-	-
WW		27	49	68	95	239

See footnotes at end of schedule


		REPORTED SALES vs. PRIOR PERIOD ($MM)
	FIRST QUARTER
				% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency
MEDICAL DEVICES AND DIAGNOSTICS ⁽²⁾
CARDIOVASCULAR CARE
US		$ 198	176	12.5%	12.5%	-
Intl		315	306	2.9%	6.2%	-3.3%
WW		513	482	6.4%	8.5%	-2.1%
DIABETES CARE
US		283	352	-19.6%	-19.6%	-
Intl		317	318	-0.3%	0.9%	-1.2%
WW		600	670	-10.4%	-9.8%	-0.6%
DIAGNOSTICS
US		248	253	-2.0%	-2.0%	-
Intl		229	259	-11.6%	-7.9%	-3.7%
WW		477	512	-6.8%	-4.9%	-1.9%
INFECTION PREVENTION/OTHER
US		85	116	-26.7%	-26.7%	-
Intl		127	128	-0.8%	4.1%	-4.9%
WW		212	244	-13.1%	-10.5%	-2.6%
ORTHOPAEDICS
US		1,261	783	61.0%	61.0%	-
Intl		1,124	710	58.3%	60.5%	-2.2%
WW		2,385	1,493	59.7%	60.7%	-1.0%
SPECIALTY SURGERY
US		319	327	-2.4%	-2.4%	-
Intl		308	301	2.3%	4.7%	-2.4%
WW		627	628	-0.2%	1.0%	-1.2%
SURGICAL CARE
US		531	593	-10.5%	-10.5%	-
Intl		977	1,032	-5.3%	-2.4%	-2.9%
WW		1,508	1,625	-7.2%	-5.4%	-1.8%
VISION CARE
US		281	277	1.4%	1.4%	-
Intl		459	480	-4.4%	1.6%	-6.0%
WW		740	757	-2.2%	1.6%	-3.8%

TOTAL MEDICAL DEVICES AND DIAGNOSTICS
US		3,206	2,877	11.4%	11.4%	-
Intl		3,856	3,534	9.1%	12.2%	-3.1%
WW		$ 7,062	6,411	10.2%	11.9%	-1.7%

* Percentage greater than 100%
(1) Operational growth excludes the effect of currency
(2) Select areas (unaudited)
(3) Reported as U.S. sales
(4) Prior year amounts have been reclassified to conform to current year product disclosure