Hurt by massive drug recalls and manufacturing delays that led to ailing domestic sales, Johnson & Johnson (NYSE:JNJ) reported mixed fourth-quarter results and offered a soft outlook.
The New Brunswick, NJ-based company posted net earnings of $1.94 billion, or 70 cents a share, compared with $2.2 billion, or 79 cents a share, in the same quarter last year.
Excluding one-time costs related to the recall of its DePuy ASR Hip device and other restructuring charges and litigation settlements, the company earned $1.03 a share, meeting average analyst estimates polled by Thomson Reuters.
Revenue for the maker of various consumer products as well as over-the-counter pharmaceuticals was $15.6 billion down about 5.5% from $16.5 billion a year ago, missing the Streetâ€™s view of $16.08 billion.
Earnings took a hit from an 8.1% decline in domestic sales, with a 3.1% drop in international sales, both impacted from several previously announced recalls of certain over-the-counter medicines, including Tylenol and Rolaids, as well as activity suspensions at its McNeil Consumer Healthcare manufacturing facility.
â€œAlthough 2010 was a challenging year, the business continued to deliver earnings growth, while investing in the future and emerging a stronger organization," said J&J CEO William C. Weldon.
The chief executive predicts continued near-term pressures on business, but said the company remains committed to investing in innovative products. During the quarter, the company submitted a Biologic License Application to the FDA for the Fibrin Pad, which aids in stopping soft tissue bleeding during surgery, and submitted a New Drug Application to the U.S. Food and Drug Administration for an experimental drug for the treatment of metastatic, advanced prostate cancer.
The company revealed fiscal 2011 non-GAAP earnings guidance in the range of $4.80 to $4.90 a share. Analysts on average are expecting $4.97.