Strong Dollar Eats into J&J Quarterly Sales

Reuters

Johnson & Johnson reported a 7.4 percent fall in quarterly sales as the impact of a strong dollar more than offset higher sales of its older drugs such as Invega line of products for schizophrenia and ADHD treatment Concerta.

Revenue fell to $17.10 billion in the third quarter from $18.47 billion a year earlier.

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International sales fell nearly 14 pct to $8.31 billion in the quarter, including a currency impact of 15.8 percent, the company said. The company receives nearly half of its revenue from outside the United States.

Net profit fell to $3.36 billion, or $1.20 per share, from $4.75 billion, or $1.66 per share, a year earlier.

The company said its adjusted profit was $1.49 per share.

Analysts on average had expected the Band-aid maker to earn $1.45 per share on revenue of $17.45 billion.

The New Brunswick, New Jersey-based company also said it planned to buy back up to $10 billion worth shares.

The company said it had about 2.77 billion shares of common stock outstanding as of Sept. 27, valuing the company at $251.82 billion.

The repurchase would take away nearly 104 million shares of the company's outstanding shares, according to Thomson Reuters calculations.

The company had already bought back $5 billion of shares in a program it announced in July last year.

The company's shares rose 1.3 percent after the buyback announcement but pared some of the gains to trade near its Monday close of $95.80 in premarket trading.

(Reporting by Vidya L Nathan in Bengaluru; Editing by Kirti Pandey and Don Sebastian)

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