NEW BRUNSWICK,
N.J., April 17, 2018
/PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today
announced sales of $20.0 billion for
the first quarter of 2018, an increase of 12.6% as compared to the
first quarter of 2017. Operational sales results increased 8.4% and
the positive impact of currency was 4.2%. Domestic sales increased
6.1%. International sales increased 19.9%, reflecting operational
growth of 10.9% and a positive currency impact of 9.0%. Excluding
the net impact of acquisitions and divestitures, on an operational
basis, worldwide sales increased 4.3%, domestic sales increased
1.3% and international sales increased 7.6%.*
Net earnings and diluted earnings per share for the first
quarter of 2018 were $4.4 billion and
$1.60, respectively. First-quarter
2018 net earnings included after-tax intangible amortization
expense of approximately $1.0 billion
and a charge for after-tax special items of approximately
$0.3 billion. First-quarter 2017 net
earnings included after-tax intangible amortization expense of
approximately $0.2 billion and a
charge for after-tax special items of approximately $0.4 billion. Excluding after-tax intangible
amortization expense and special items, adjusted net earnings for
the current quarter were $5.6 billion
and adjusted diluted earnings per share were $2.06, representing increases of 11.8% and 12.6%,
respectively, as compared to the same period in 2017.*
On an operational basis, adjusted diluted earnings per share also
increased 5.5%.* A reconciliation of non-GAAP financial
measures is included as an accompanying schedule.
"We are pleased with the strong and consistent performance
delivered by our colleagues around the world, demonstrated by our
sales and EPS growth in the first quarter," said Alex Gorsky, Chairman and Chief Executive
Officer. "Our Pharmaceutical business continues to deliver robust
growth and we are pleased with the improvement in our Consumer
business. In our Medical Devices businesses, we have areas of
leadership and continue to make investments and portfolio choices
to improve performance."
Mr. Gorsky continued, "The U.S. tax legislation passed
late last year is creating the opportunity for us to invest more
than $30 billion in R&D and
capital investments in the U.S. over the next four years, which is
an increase of 15%."
The Company increased its sales guidance for the full-year
2018 to a range of $81.0 to
$81.8 billion, reflecting expected
operational growth in the range of 4.0% to 5.0%. Additionally, the
Company reaffirmed its adjusted earnings guidance for full-year
2018 to a range of $8.00 to
$8.20 per share, reflecting expected
operational growth in the range of 6.8% to 9.6%.
Segment Sales Performance
Worldwide Consumer sales of $3.4
billion for the first quarter 2018 represented an increase
of 5.3% versus the prior year, consisting of an operational
increase of 1.3% and a positive impact from currency of 4.0%.
Domestic sales increased 1.6%, international sales increased 8.2%,
which reflected an operational increase of 1.2% and a positive
currency impact of 7.0%. Excluding the net impact of
acquisitions and divestitures, on an operational basis, worldwide
sales increased 2.0%, domestic sales increased 1.6% and
international sales increased 2.3%*.
Worldwide operational results, excluding the net impact of
acquisitions and divestitures, were driven by beauty products
primarily NEUTROGENA, AVEENO, and Dr. Ci Labo, and
international analgesics in over-the-counter products, partially
offset by the negative impact of domestic baby care
products.
Worldwide Pharmaceutical sales of $9.8 billion for the first quarter 2018
represented an increase of 19.4% versus the prior year with an
operational increase of 15.1% and a positive impact from currency
of 4.3%. Domestic sales increased 9.9%; international sales
increased 33.1%, which reflected an operational increase of 22.5%
and a positive currency impact of 10.6%. Sales included the impact
of Actelion Ltd which contributed 7.6%, to worldwide operational
sales growth. Excluding the net impact of acquisitions and
divestitures, on an operational basis, worldwide sales increased
7.5%, domestic sales increased 2.2% and international sales
increased 15.3%.*
Worldwide operational results, excluding the net impact of
acquisitions and divestitures, were driven by new products and the
strength of core products. Strong growth in new products include
DARZALEX (daratumumab), for the treatment of patients with
multiple myeloma, IMBRUVICA (ibrutinib), an oral, once-daily
therapy approved for use in treating certain B-cell malignancies, a
type of blood or lymph node cancer and TREMFYA (guselkumab),
for the treatment of adults living with moderate to severe plaque
psoriasis. Additional contributors to operational sales
growth included ZYTIGA (abiraterone acetate), an oral,
once-daily medication for use in combination with prednisone for
the treatment of metastatic, castration-resistant prostate cancer,
STELARA (ustekinumab) and international SIMPONI/SIMPONI ARIA
(golimumab), biologics for the treatment of a number of
immune-mediated inflammatory diseases, XARELTO (rivaroxaban),
an oral anticoagulant, and
INVEGA SUSTENNA/XEPLION/TRINZA/TREVICTA (paliperidone
palmitate), long-acting, injectable atypical antipsychotics for the
treatment of schizophrenia in adults.
During the quarter, the U.S. Food and Drug Administration
(FDA) approved an additional indication for ZYTIGA
(abiraterone acetate), in combination with
prednisone for the treatment of patients with metastatic high-risk
castration-sensitive prostate cancer and ERLEADA (apalutamide) an
oral androgen receptor inhibitor for the treatment of patients with
non-metastatic castration-resistant prostate cancer. In
addition, the Committee for Medicinal Products for
Human Use issued a positive opinion recommending marketing
authorization for JULUCA (rilpivirine and
dolutegravir), the first, single-pill, two-drug regimen for the
treatment of human immunodeficiency virus type 1
infection.
Also in the quarter, a marketing authorization application
was submitted to the European Medicines Agency for apalutamide, an
oral androgen receptor inhibitor for the treatment of patients with
high-risk non-metastatic castration-resistant prostate
cancer.
Worldwide Medical Devices sales of $6.8 billion for the first quarter 2018
represented an increase of 7.5% versus the prior year consisting of
an operational increase of 3.2% and a positive currency impact of
4.3%. Domestic sales increased 2.2%; international sales increased
12.7%, which reflected an operational increase of 4.2% and a
positive currency impact of 8.5%. Sales included the partial
quarter impact of the recently acquired surgical vision business
which contributed 3.1%, to worldwide operational sales
growth. Excluding the net impact of acquisitions and divestitures,
on an operational basis, worldwide sales increased 1.1%, domestic
sales decreased 0.2% and international sales increased
2.4%.*
Worldwide operational results, excluding the net impact of
acquisitions and divestitures, were driven by ACUVUE contact lenses
in the Vision Care business; electrophysiology products in the
Interventional Solutions business; endocutters in the Advanced
Surgery business; and trauma products in the Orthopaedics business,
partially offset by declines in the Diabetes Care business and
spine products in the Orthopaedics business.
During the quarter, the acquisition of Orthotaxy S.A.S., a
privately-held developer of software-enabled surgery technologies,
including a differentiated robotic-assisted surgery was completed.
In addition, the Company announced a binding offer
from Platinum Equity, a private investment firm, to acquire its
LifeScan business for approximately $2.1
billion, subject to customary adjustments.
Subsequent to the quarter, ACUVUE OASYS with Transitions
received 510(k) clearance from the FDA and is indicated for vision
correction and the attenuation of bright light.
Additionally, Johnson & Johnson plans to implement
actions across its global supply chain that are intended to enable
the company to focus resources and increase investments in critical
capabilities, technologies and solutions necessary to manufacture
and supply its product portfolio of the future, enhance agility and
drive growth. The Company expects these supply chain actions will
include expanding our use of strategic collaborations, and
bolstering our initiatives to reduce complexity, improving
cost-competitiveness, enhancing capabilities and optimizing our
network. Discussions regarding specific future actions are
ongoing and are subject to all relevant consultation requirements
before they are finalized.
In total, the Company expects these actions to generate
approximately $0.6 to $0.8 billion in annual pre-tax cost savings that
will be substantially delivered by 2022. The Company expects to
record pre-tax restructuring charges of approximately $1.9 to $2.3
billion, which will be treated as a special item.
About Johnson & Johnson
At
Johnson & Johnson, we believe good health is the foundation of
vibrant lives, thriving communities and forward progress. That's
why for more than 130 years, we have aimed to keep people well at
every age and every stage of life. Today, as the world's largest
and most broadly-based health care company, we are committed to
using our reach and size for good. We strive to improve access and
affordability, create healthier communities, and put a healthy
mind, body and environment within reach of everyone, everywhere. We
are blending our heart, science and ingenuity to profoundly change
the trajectory of health for humanity.
* Operational sales growth excluding the net
impact of acquisitions and divestitures, as well as adjusted net
earnings, adjusted diluted earnings per share and operational
adjusted diluted earnings per share excluding after-tax intangible
amortization expense and 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.
Except for guidance measures, reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures can be found in the accompanying financial
schedules of the earnings release and the Investor Relations
section of the company's website at
www.investor.jnj.com. Johnson & Johnson does
not provide GAAP financial measures on a forward-looking basis
because the company is unable to predict with reasonable certainty
the ultimate outcome of legal proceedings, unusual gains and
losses, acquisition-related expenses and purchase accounting fair
value adjustments without unreasonable effort. These items are
uncertain, depend on various factors, and could be material to
Johnson & Johnson's results computed in accordance with
GAAP.
Johnson & Johnson will conduct a conference call with
investors to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast
of the call 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, reconciliations of non-GAAP
financial measures, and sales of key products/franchises.
Additional information on Johnson & Johnson, including adjusted
income before tax by segment, a pharmaceutical pipeline of selected
compounds in late stage development and a copy of today's earnings
call presentation can be found on the company's website at
www.investor.jnj.com.
NOTE TO INVESTORS CONCERNING FORWARD-LOOKING
STATEMENTS
This press release contains "forward-looking statements"
as defined in the Private Securities Litigation Reform Act of 1995
regarding, among other things: future operating and financial
performance, product development, market position and business
strategy. 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 known 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: economic factors, such as interest
rate and currency exchange rate fluctuations; competition,
including technological advances, new products and patents attained
by competitors; challenges inherent in new product research and
development, including uncertainty of clinical success and
obtaining regulatory approvals; uncertainty of commercial success
for new and existing products; challenges to patents; the impact of
patent expirations; the ability of the company to successfully
execute strategic plans, including restructuring plans; the impact
of business combinations and divestitures; manufacturing
difficulties or delays, internally or within the supply chain;
product efficacy or safety concerns resulting in product recalls or
regulatory action; significant adverse litigation or government
action, including related to product liability claims; changes to
applicable laws and regulations, including tax laws and global
health care reforms; trends toward health care cost containment;
changes in behavior and spending patterns of purchasers of health
care products and services; financial instability of international
economies and legal systems and sovereign risk; increased scrutiny
of the health care industry by government agencies. A further list
and descriptions of these risks, uncertainties and other factors
can be found in Johnson & Johnson's Annual Report on Form 10-K
for the fiscal year ended December 31,
2017, including in the sections captioned "Cautionary Note
Regarding Forward-Looking Statements" and "Item 1A. Risk Factors,"
and in the company's subsequent Quarterly Reports on Form 10-Q and
other filings with the Securities and Exchange Commission. Copies
of these filings are available online at
www.sec.gov, www.jnj.com
or on request from Johnson & Johnson. Any forward-looking
statement made in this release speaks only as of the date of this
release. Johnson & Johnson does not undertake to update any
forward-looking statement 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
|
|
2018
|
|
2017
|
|
Total
|
|
Operations
|
|
Currency
|
Sales to customers
by
|
|
|
|
|
|
|
|
|
|
segment of
business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
U.S.
|
$
1,436
|
|
1,414
|
|
1.6
|
%
|
1.6
|
|
-
|
International
|
1,962
|
|
1,814
|
|
8.2
|
|
1.2
|
|
7.0
|
|
3,398
|
|
3,228
|
|
5.3
|
|
1.3
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical
|
|
|
|
|
|
|
|
|
|
U.S.
|
5,354
|
|
4,872
|
|
9.9
|
|
9.9
|
|
-
|
International
|
4,490
|
|
3,373
|
|
33.1
|
|
22.5
|
|
10.6
|
|
9,844
|
|
8,245
|
|
19.4
|
|
15.1
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
Medical
Devices
|
|
|
|
|
|
|
|
|
|
U.S.
|
3,161
|
|
3,092
|
|
2.2
|
|
2.2
|
|
-
|
International
|
3,606
|
|
3,201
|
|
12.7
|
|
4.2
|
|
8.5
|
|
6,767
|
|
6,293
|
|
7.5
|
|
3.2
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
9,951
|
|
9,378
|
|
6.1
|
|
6.1
|
|
-
|
International
|
10,058
|
|
8,388
|
|
19.9
|
|
10.9
|
|
9.0
|
Worldwide
|
$
20,009
|
|
17,766
|
|
12.6
|
%
|
8.4
|
|
4.2
|
Johnson &
Johnson and Subsidiaries
|
Supplementary
Sales Data
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited; Dollars
in Millions)
|
|
FIRST
QUARTER
|
|
|
|
|
|
|
Percent
Change
|
|
|
2018
|
|
2017
|
|
Total
|
|
Operations
|
|
Currency
|
Sales to customers
by
|
|
|
|
|
|
|
|
|
|
|
geographic
area
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
9,951
|
|
9,378
|
|
6.1
|
%
|
6.1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
4,797
|
|
3,858
|
|
24.3
|
|
10.0
|
|
14.3
|
Western Hemisphere
excluding U.S.
|
|
1,567
|
|
1,454
|
|
7.8
|
|
7.2
|
|
0.6
|
Asia-Pacific,
Africa
|
|
3,694
|
|
3,076
|
|
20.1
|
|
13.7
|
|
6.4
|
International
|
|
10,058
|
|
8,388
|
|
19.9
|
|
10.9
|
|
9.0
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide
|
|
$
20,009
|
|
17,766
|
|
12.6
|
%
|
8.4
|
|
4.2
|
Johnson &
Johnson and Subsidiaries
|
Condensed
Consolidated Statement of Earnings
|
|
|
|
|
|
|
|
|
|
|
(Unaudited; in
Millions Except Per Share Figures)
|
FIRST
QUARTER
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017*
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Percent
|
|
Increase
|
|
Amount
|
|
to
Sales
|
|
Amount
|
|
to
Sales
|
|
(Decrease)
|
Sales to
customers
|
$
20,009
|
|
100.0
|
|
$
17,766
|
|
100.0
|
|
12.6
|
Cost of products
sold
|
6,614
|
|
33.1
|
|
5,409
|
|
30.4
|
|
22.3
|
Selling, marketing
and administrative expenses
|
5,263
|
|
26.3
|
|
4,763
|
|
26.8
|
|
10.5
|
Research and
development expense
|
2,404
|
|
12.0
|
|
2,070
|
|
11.7
|
|
16.1
|
Interest (income)
expense, net
|
145
|
|
0.7
|
|
83
|
|
0.5
|
|
|
Other (income)
expense, net
|
60
|
|
0.3
|
|
(219)
|
|
(1.3)
|
|
|
Restructuring
|
42
|
|
0.2
|
|
85
|
|
0.5
|
|
|
Earnings before
provision for taxes on income
|
5,481
|
|
27.4
|
|
5,575
|
|
31.4
|
|
(1.7)
|
Provision for
taxes on income
|
1,114
|
|
5.6
|
|
1,153
|
|
6.5
|
|
(3.4)
|
Net
earnings
|
4,367
|
|
21.8
|
|
4,422
|
|
24.9
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share (Diluted)
|
$
1.60
|
|
|
|
$
1.61
|
|
|
|
(0.6)
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (Diluted)
|
2,731.9
|
|
|
|
2,754.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
20.3
|
%
|
|
|
20.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
before provision for taxes and net earnings
(1)
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for taxes on income
|
$
6,858
|
|
34.3
|
|
$
6,103
|
|
34.4
|
|
12.4
|
Net
earnings
|
$
5,635
|
|
28.2
|
|
$
5,038
|
|
28.4
|
|
11.8
|
Net earnings per
share (Diluted)
|
$
2.06
|
|
|
|
$
1.83
|
|
|
|
12.6
|
Effective tax
rate
|
17.8
|
%
|
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)See
Reconciliation of Non-GAAP Financial Measures.
|
*2017 Statement of
Earnings line items have been restated to reflect impact of ASU
2017-07
|
Johnson &
Johnson and Subsidiaries
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
% Incr. /
|
|
(Dollars in
Millions Except Per Share Data)
|
2018
|
|
2017
|
|
(Decr.)
|
|
|
|
|
|
|
|
|
Earnings before
provision for taxes on income - as reported
|
$ 5,481
|
|
5,575
|
|
(1.7)
|
%
|
|
|
|
|
|
|
|
Intangible asset
amortization expense
|
1,115
|
|
329
|
|
|
|
|
|
|
|
|
|
|
Restructuring/Other
(1)
|
107
|
|
161
|
|
|
|
|
|
|
|
|
|
|
Actelion acquisition
related cost
|
96
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Unrealized
loss/(gain) on securities
|
27
|
|
-
|
|
|
|
|
|
|
|
|
|
|
AMO acquisition
related cost
|
21
|
|
38
|
|
|
|
|
|
|
|
|
|
|
Other
|
11
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for taxes on income - as adjusted
|
$ 6,858
|
|
6,103
|
|
12.4
|
%
|
|
|
|
|
|
|
|
Net Earnings - as
reported
|
$ 4,367
|
|
4,422
|
|
(1.2)
|
%
|
|
|
|
|
|
|
|
Intangible asset
amortization expense
|
996
|
|
244
|
|
|
|
|
|
|
|
|
|
|
Restructuring/Other
|
81
|
|
121
|
|
|
|
|
|
|
|
|
|
|
Actelion acquisition
related cost
|
92
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Unrealized
loss/(gain) on securities
|
21
|
|
-
|
|
|
|
|
|
|
|
|
|
|
AMO acquisition
related cost
|
17
|
|
251
|
|
|
|
|
|
|
|
|
|
|
Impact of tax
legislation(2)
|
52
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Other
|
9
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net Earnings - as
adjusted
|
$ 5,635
|
|
5,038
|
|
11.8
|
%
|
|
|
|
|
|
|
|
Diluted Net Earnings
per share - as reported
|
$
1.60
|
|
1.61
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
Intangible asset
amortization expense
|
0.36
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
Restructuring/Other
|
0.03
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
Actelion acquisition
related cost
|
0.03
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Unrealized
loss/(gain) on securities
|
0.01
|
|
-
|
|
|
|
|
|
|
|
|
|
|
AMO acquisition
related cost
|
0.01
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
Impact of tax
legislation
|
0.02
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Other
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Earnings
per share - as adjusted
|
$
2.06
|
|
1.83
|
|
12.6
|
%
|
|
|
|
|
|
|
|
Operational Diluted
Net Earnings per share - as adjusted at 2016 foreign currency
exchange rates
|
|
|
1.86
|
|
|
|
|
|
|
|
|
|
|
Impact of currency at
2017 foreign currency exchange rates
|
(0.13)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
Operational Diluted
Net Earnings per share - as adjusted at 2017 foreign currency
exchange rates
|
$
1.93
|
|
1.83
|
|
5.5
|
%
|
|
|
|
|
|
|
|
(1)Includes $6M recorded in cost of
products sold and $59M recorded in other (income) expense in the
first quarter 2018,
|
and $4M recorded in
cost of products sold and $72M recorded in other (income) expense
in the first quarter 2017
|
(2)Includes foreign currency
translation
|
Johnson &
Johnson and Subsidiaries
|
Reconciliation of
Non-GAAP Financial Measure
|
|
|
|
|
|
|
|
|
|
Operational Sales
Growth Excluding Acquisitions and Divestitures
|
FIRST
QUARTER 2018 ACTUAL vs. 2017 ACTUAL
|
|
|
|
|
|
|
|
|
|
|
Segments
|
|
|
Consumer
|
|
Pharmaceutical
|
|
Medical
Devices
|
|
Total
|
|
|
Operational
%(1)
|
WW As
Reported:
|
|
1.3%
|
|
15.1%
|
|
3.2%
|
|
8.4%
|
U.S.
|
|
1.6%
|
|
9.9%
|
|
2.2%
|
|
6.1%
|
International
|
|
1.2%
|
|
22.5%
|
|
4.2%
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
Vision
Care
|
|
|
|
|
|
|
|
|
Vision Surgical
& Eye Health Business
(2)
|
|
|
|
|
|
(3.1)
|
|
(1.1)
|
U.S.
|
|
|
|
|
|
(2.8)
|
|
(0.9)
|
International
|
|
|
|
|
|
(3.4)
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
Pulmonary
Hypertension
|
|
|
|
|
|
|
|
|
Actelion
|
|
|
|
(7.1)
|
|
|
|
(3.3)
|
U.S.
|
|
|
|
(7.4)
|
|
|
|
(3.8)
|
International
|
|
|
|
(6.6)
|
|
|
|
(2.7)
|
|
|
|
|
|
|
|
|
|
Cardiovascular /
Metabolism / Other
|
|
|
|
|
|
|
|
|
Actelion
|
|
|
|
(0.5)
|
|
|
|
(0.2)
|
U.S.
|
|
|
|
(0.3)
|
|
|
|
(0.2)
|
International
|
|
|
|
(0.6)
|
|
|
|
(0.3)
|
|
|
|
|
|
|
|
|
|
Spine &
Other
|
|
|
|
|
|
|
|
|
Codman
Neuroscience
|
|
|
|
|
|
1.0
|
|
0.4
|
U.S.
|
|
|
|
|
|
0.7
|
|
0.2
|
International
|
|
|
|
|
|
1.4
|
|
0.6
|
|
|
|
|
|
|
|
|
|
Wound Care /
Other
|
|
|
|
|
|
|
|
|
Compeed
|
|
0.7
|
|
|
|
|
|
0.1
|
U.S.
|
|
0.0
|
|
|
|
|
|
0.0
|
International
|
|
1.2
|
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
All Other
Acquisitions and Divestitures
|
|
0.0
|
|
|
|
0.0
|
|
0.0
|
U.S.
|
|
0.0
|
|
|
|
(0.3)
|
|
(0.1)
|
International
|
|
(0.1)
|
|
|
|
0.2
|
|
0.1
|
|
|
|
|
|
|
|
|
|
WW Ops excluding
Acquisitions and Divestitures
|
|
2.0%
|
|
7.5%
|
|
1.1%
|
|
4.3%
|
U.S.
|
|
1.6%
|
|
2.2%
|
|
(0.2)%
|
|
1.3%
|
International
|
|
2.3%
|
|
15.3%
|
|
2.4%
|
|
7.6%
|
|
|
|
|
|
|
|
|
|
(1)Operational growth excludes the effect
of translational currency
|
(2)Previously referred to as Medical
Optics
|
|
|
REPORTED SALES vs.
PRIOR PERIOD ($MM)
|
|
FIRST
QUARTER
|
|
|
|
|
|
%
Change
|
|
|
2018
|
|
2017
|
Reported
|
Operational
(1)
|
Currency
|
CONSUMER SEGMENT
(2)
|
|
|
|
|
|
|
|
BABY CARE
|
|
|
|
|
|
|
|
US
|
|
$
97
|
|
113
|
-14.2%
|
-14.2%
|
-
|
Intl
|
|
360
|
|
342
|
5.3%
|
1.3%
|
4.0%
|
WW
|
|
457
|
|
455
|
0.4%
|
-2.6%
|
3.0%
|
BEAUTY
|
|
|
|
|
|
|
|
US
|
|
611
|
|
567
|
7.8%
|
7.8%
|
-
|
Intl
|
|
473
|
|
414
|
14.3%
|
6.2%
|
8.1%
|
WW
|
|
1,084
|
|
981
|
10.5%
|
7.1%
|
3.4%
|
ORAL CARE
|
|
|
|
|
|
|
|
US
|
|
157
|
|
156
|
0.6%
|
0.6%
|
-
|
Intl
|
|
222
|
|
206
|
7.8%
|
0.7%
|
7.1%
|
WW
|
|
379
|
|
362
|
4.7%
|
0.6%
|
4.1%
|
OTC
|
|
|
|
|
|
|
|
US
|
|
465
|
|
477
|
-2.5%
|
-2.5%
|
-
|
Intl
|
|
607
|
|
536
|
13.2%
|
3.9%
|
9.3%
|
WW
|
|
1,072
|
|
1,013
|
5.8%
|
0.9%
|
4.9%
|
WOMEN'S
HEALTH
|
|
|
|
|
|
|
|
US
|
|
3
|
|
3
|
0.0%
|
0.0%
|
-
|
Intl
|
|
240
|
|
239
|
0.4%
|
-4.6%
|
5.0%
|
WW
|
|
243
|
|
242
|
0.4%
|
-4.6%
|
5.0%
|
WOUND CARE /
OTHER
|
|
|
|
|
|
|
|
US
|
|
103
|
|
98
|
5.1%
|
5.1%
|
-
|
Intl
|
|
60
|
|
77
|
-22.1%
|
-26.7%
|
4.6%
|
WW
|
|
163
|
|
175
|
-6.9%
|
-8.9%
|
2.0%
|
|
|
|
|
|
|
|
|
TOTAL
CONSUMER
|
|
|
|
|
|
|
|
US
|
|
1,436
|
|
1,414
|
1.6%
|
1.6%
|
-
|
Intl
|
|
1,962
|
|
1,814
|
8.2%
|
1.2%
|
7.0%
|
WW
|
|
$
3,398
|
|
3,228
|
5.3%
|
1.3%
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes at end
of schedule
|
|
|
REPORTED SALES vs.
PRIOR PERIOD ($MM)
|
|
FIRST
QUARTER
|
|
|
|
|
|
%
Change
|
|
|
2018
|
|
2017
|
Reported
|
Operational
(1)
|
Currency
|
PHARMACEUTICAL
SEGMENT (2)
|
|
|
|
|
|
|
|
IMMUNOLOGY
|
|
|
|
|
|
|
|
US
|
|
$
2,000
|
|
2,123
|
-5.8%
|
-5.8%
|
-
|
Intl
|
|
1,042
|
|
807
|
29.1%
|
19.4%
|
9.7%
|
WW
|
|
3,042
|
|
2,930
|
3.8%
|
1.1%
|
2.7%
|
REMICADE
|
|
|
|
|
|
|
|
US
|
|
916
|
|
1,182
|
-22.5%
|
-22.5%
|
-
|
US Exports
(3)
|
|
142
|
|
165
|
-13.9%
|
-13.9%
|
-
|
Intl
|
|
331
|
|
325
|
1.8%
|
-3.7%
|
5.5%
|
WW
|
|
1,389
|
|
1,672
|
-16.9%
|
-18.0%
|
1.1%
|
SIMPONI / SIMPONI
ARIA
|
|
|
|
|
|
|
|
US
|
|
224
|
|
229
|
-2.2%
|
-2.2%
|
-
|
Intl
|
|
294
|
|
199
|
47.7%
|
37.3%
|
10.4%
|
WW
|
|
518
|
|
428
|
21.0%
|
16.2%
|
4.8%
|
STELARA
|
|
|
|
|
|
|
|
US
|
|
652
|
|
547
|
19.2%
|
19.2%
|
-
|
Intl
|
|
409
|
|
276
|
48.2%
|
34.0%
|
14.2%
|
WW
|
|
1,061
|
|
823
|
28.9%
|
24.1%
|
4.8%
|
OTHER
IMMUNOLOGY
|
|
|
|
|
|
|
|
US
|
|
66
|
|
-
|
*
|
*
|
-
|
Intl
|
|
8
|
|
7
|
14.3%
|
13.3%
|
1.0%
|
WW
|
|
74
|
|
7
|
*
|
*
|
*
|
INFECTIOUS
DISEASES
|
|
|
|
|
|
|
|
US
|
|
333
|
|
326
|
2.1%
|
2.1%
|
-
|
Intl
|
|
497
|
|
423
|
17.5%
|
5.9%
|
11.6%
|
WW
|
|
830
|
|
749
|
10.8%
|
4.2%
|
6.6%
|
EDURANT /
rilpivirine
|
|
|
|
|
|
|
|
US
|
|
14
|
|
12
|
16.7%
|
16.7%
|
-
|
Intl
|
|
196
|
|
137
|
43.1%
|
25.2%
|
17.9%
|
WW
|
|
210
|
|
149
|
40.9%
|
24.5%
|
16.4%
|
PREZISTA / PREZCOBIX /
REZOLSTA / SYMTUZA
|
|
|
|
|
|
|
|
US
|
|
273
|
|
259
|
5.4%
|
5.4%
|
-
|
Intl
|
|
205
|
|
171
|
19.9%
|
9.4%
|
10.5%
|
WW
|
|
478
|
|
430
|
11.2%
|
7.0%
|
4.2%
|
OTHER INFECTIOUS
DISEASES
|
|
|
|
|
|
|
|
US
|
|
46
|
|
55
|
-16.4%
|
-16.4%
|
-
|
Intl
|
|
96
|
|
115
|
-16.5%
|
-22.4%
|
5.9%
|
WW
|
|
142
|
|
170
|
-16.5%
|
-20.5%
|
4.0%
|
|
|
REPORTED SALES vs.
PRIOR PERIOD ($MM)
|
|
FIRST
QUARTER
|
|
|
|
|
|
%
Change
|
|
|
2018
|
|
2017
|
Reported
|
Operational
(1)
|
Currency
|
NEUROSCIENCE
|
|
|
|
|
|
|
|
US
|
|
624
|
|
664
|
-6.0%
|
-6.0%
|
-
|
Intl
|
|
935
|
|
833
|
12.2%
|
3.3%
|
8.9%
|
WW
|
|
1,559
|
|
1,497
|
4.1%
|
-0.8%
|
4.9%
|
CONCERTA /
Methylphenidate
|
|
|
|
|
|
|
|
US
|
|
66
|
|
108
|
-38.9%
|
-38.9%
|
-
|
Intl
|
|
107
|
|
101
|
5.9%
|
-0.9%
|
6.8%
|
WW
|
|
173
|
|
209
|
-17.2%
|
-20.5%
|
3.3%
|
INVEGA SUSTENNA /
XEPLION / TRINZA / TREVICTA
|
|
|
|
|
|
|
|
US
|
|
400
|
|
372
|
7.5%
|
7.5%
|
-
|
Intl
|
|
296
|
|
232
|
27.6%
|
15.2%
|
12.4%
|
WW
|
|
696
|
|
604
|
15.2%
|
10.5%
|
4.7%
|
RISPERDAL
CONSTA
|
|
|
|
|
|
|
|
US
|
|
82
|
|
95
|
-13.7%
|
-13.7%
|
-
|
Intl
|
|
114
|
|
112
|
1.8%
|
-7.1%
|
8.9%
|
WW
|
|
196
|
|
207
|
-5.3%
|
-10.2%
|
4.9%
|
OTHER
NEUROSCIENCE
|
|
|
|
|
|
|
|
US
|
|
76
|
|
89
|
-14.6%
|
-14.6%
|
-
|
Intl
|
|
418
|
|
388
|
7.7%
|
0.4%
|
7.3%
|
WW
|
|
494
|
|
477
|
3.6%
|
-2.3%
|
5.9%
|
ONCOLOGY
|
|
|
|
|
|
|
|
US
|
|
933
|
|
664
|
40.5%
|
40.5%
|
-
|
Intl
|
|
1,378
|
|
930
|
48.2%
|
34.5%
|
13.7%
|
WW
|
|
2,311
|
|
1,594
|
45.0%
|
37.0%
|
8.0%
|
DARZALEX
|
|
|
|
|
|
|
|
US
|
|
264
|
|
201
|
31.3%
|
31.3%
|
-
|
Intl
|
|
168
|
|
54
|
*
|
*
|
*
|
WW
|
|
432
|
|
255
|
69.4%
|
63.5%
|
5.9%
|
IMBRUVICA
|
|
|
|
|
|
|
|
US
|
|
227
|
|
190
|
19.5%
|
19.5%
|
-
|
Intl
|
|
360
|
|
219
|
64.4%
|
49.0%
|
15.4%
|
WW
|
|
587
|
|
409
|
43.5%
|
35.3%
|
8.2%
|
VELCADE
|
|
|
|
|
|
|
|
US
|
|
-
|
|
-
|
-
|
-
|
-
|
Intl
|
|
313
|
|
280
|
11.8%
|
1.6%
|
10.2%
|
WW
|
|
313
|
|
280
|
11.8%
|
1.6%
|
10.2%
|
ZYTIGA
|
|
|
|
|
|
|
|
US
|
|
407
|
|
233
|
74.7%
|
74.7%
|
-
|
Intl
|
|
438
|
|
290
|
51.0%
|
36.8%
|
14.2%
|
WW
|
|
845
|
|
523
|
61.6%
|
53.7%
|
7.9%
|
OTHER
ONCOLOGY
|
|
|
|
|
|
|
|
US
|
|
35
|
|
40
|
-12.5%
|
-12.5%
|
-
|
Intl
|
|
99
|
|
87
|
13.8%
|
4.0%
|
9.8%
|
WW
|
|
134
|
|
127
|
5.5%
|
-1.2%
|
6.7%
|
|
|
REPORTED SALES vs.
PRIOR PERIOD ($MM)
|
|
FIRST
QUARTER
|
|
|
|
|
|
%
Change
|
|
|
2018
|
|
2017
|
Reported
|
Operational
(1)
|
Currency
|
PULMONARY
HYPERTENSION(4)
|
|
|
|
|
|
|
|
US
|
|
361
|
|
-
|
*
|
*
|
-
|
Intl
|
|
224
|
|
-
|
*
|
*
|
-
|
WW
|
|
585
|
|
-
|
*
|
*
|
-
|
OPSUMIT
|
|
|
|
|
|
|
|
US
|
|
149
|
|
-
|
*
|
*
|
-
|
Intl
|
|
122
|
|
-
|
*
|
*
|
-
|
WW
|
|
271
|
|
-
|
*
|
*
|
-
|
TRACLEER
|
|
|
|
|
|
|
|
US
|
|
68
|
|
-
|
*
|
*
|
-
|
Intl
|
|
72
|
|
-
|
*
|
*
|
-
|
WW
|
|
140
|
|
-
|
*
|
*
|
-
|
UPTRAVI
|
|
|
|
|
|
|
|
US
|
|
124
|
|
-
|
*
|
*
|
-
|
Intl
|
|
16
|
|
-
|
*
|
*
|
-
|
WW
|
|
140
|
|
-
|
*
|
*
|
-
|
OTHER
|
|
|
|
|
|
|
|
US
|
|
20
|
|
-
|
*
|
*
|
-
|
Intl
|
|
14
|
|
-
|
*
|
*
|
-
|
WW
|
|
34
|
|
-
|
*
|
*
|
-
|
|
|
|
|
|
|
|
|
CARDIOVASCULAR /
METABOLISM / OTHER
|
|
|
|
|
|
|
|
US
|
|
1,103
|
|
1,095
|
0.7%
|
0.7%
|
-
|
Intl
|
|
414
|
|
380
|
8.9%
|
1.4%
|
7.5%
|
WW
|
|
1,517
|
|
1,475
|
2.8%
|
0.9%
|
1.9%
|
XARELTO
|
|
|
|
|
|
|
|
US
|
|
578
|
|
513
|
12.7%
|
12.7%
|
-
|
Intl
|
|
-
|
|
-
|
-
|
-
|
-
|
WW
|
|
578
|
|
513
|
12.7%
|
12.7%
|
-
|
INVOKANA /
INVOKAMET
|
|
|
|
|
|
|
|
US
|
|
204
|
|
247
|
-17.4%
|
-17.4%
|
-
|
Intl
|
|
44
|
|
37
|
18.9%
|
10.3%
|
8.6%
|
WW
|
|
248
|
|
284
|
-12.7%
|
-13.8%
|
1.1%
|
PROCRIT /
EPREX
|
|
|
|
|
|
|
|
US
|
|
189
|
|
169
|
11.8%
|
11.8%
|
-
|
Intl
|
|
87
|
|
78
|
11.5%
|
2.8%
|
8.7%
|
WW
|
|
276
|
|
247
|
11.7%
|
9.0%
|
2.7%
|
OTHER
|
|
|
|
|
|
|
|
US
|
|
132
|
|
166
|
-20.5%
|
-20.5%
|
-
|
Intl
|
|
283
|
|
265
|
6.8%
|
-0.2%
|
7.0%
|
WW
|
|
415
|
|
431
|
-3.7%
|
-8.0%
|
4.3%
|
|
|
|
|
|
|
|
|
TOTAL
PHARMACEUTICAL
|
|
|
|
|
|
|
|
US
|
|
5,354
|
|
4,872
|
9.9%
|
9.9%
|
-
|
Intl
|
|
4,490
|
|
3,373
|
33.1%
|
22.5%
|
10.6%
|
WW
|
|
$
9,844
|
|
8,245
|
19.4%
|
15.1%
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes at end
of schedule
|
|
|
|
|
|
|
|
|
|
REPORTED SALES vs.
PRIOR PERIOD ($MM)
|
|
FIRST
QUARTER
|
|
|
|
|
|
%
Change
|
|
|
2018
|
|
2017
|
Reported
|
Operational
(1)
|
Currency
|
MEDICAL DEVICES
SEGMENT (2)(5)
|
|
|
|
|
|
|
|
DIABETES
CARE
|
|
|
|
|
|
|
|
US
|
|
$
117
|
|
154
|
-24.0%
|
-24.0%
|
-
|
Intl
|
|
222
|
|
245
|
-9.4%
|
-16.7%
|
7.3%
|
WW
|
|
339
|
|
399
|
-15.0%
|
-19.5%
|
4.5%
|
DIAGNOSTICS
|
|
|
|
|
|
|
|
US
|
|
-
|
|
-
|
-
|
-
|
-
|
Intl
|
|
-
|
|
1
|
*
|
*
|
*
|
WW
|
|
-
|
|
1
|
*
|
*
|
*
|
INTERVENTIONAL
SOLUTIONS (6)
|
|
|
|
|
|
|
|
US
|
|
304
|
|
279
|
9.0%
|
9.0%
|
-
|
Intl
|
|
336
|
|
270
|
24.4%
|
14.3%
|
10.1%
|
WW
|
|
640
|
|
549
|
16.6%
|
11.6%
|
5.0%
|
ORTHOPAEDICS(6)
|
|
|
|
|
|
|
|
US
|
|
1,307
|
|
1,359
|
-3.8%
|
-3.8%
|
-
|
Intl
|
|
943
|
|
916
|
2.9%
|
-5.8%
|
8.7%
|
WW
|
|
2,250
|
|
2,275
|
-1.1%
|
-4.6%
|
3.5%
|
HIPS
|
|
|
|
|
|
|
|
US
|
|
209
|
|
209
|
0.0%
|
0.0%
|
-
|
Intl
|
|
154
|
|
143
|
7.7%
|
-1.2%
|
8.9%
|
WW
|
|
363
|
|
352
|
3.1%
|
-0.5%
|
3.6%
|
KNEES
|
|
|
|
|
|
|
|
US
|
|
228
|
|
246
|
-7.3%
|
-7.3%
|
-
|
Intl
|
|
159
|
|
152
|
4.6%
|
-4.2%
|
8.8%
|
WW
|
|
387
|
|
398
|
-2.8%
|
-6.2%
|
3.4%
|
TRAUMA
|
|
|
|
|
|
|
|
US
|
|
407
|
|
391
|
4.1%
|
4.1%
|
-
|
Intl
|
|
289
|
|
251
|
15.1%
|
5.6%
|
9.5%
|
WW
|
|
696
|
|
642
|
8.4%
|
4.7%
|
3.7%
|
SPINE &
OTHER(6)
|
|
|
|
|
|
|
|
US
|
|
463
|
|
513
|
-9.7%
|
-9.7%
|
-
|
Intl
|
|
341
|
|
370
|
-7.8%
|
-15.8%
|
8.0%
|
WW
|
|
804
|
|
883
|
-8.9%
|
-12.2%
|
3.3%
|
|
|
REPORTED SALES vs.
PRIOR PERIOD ($MM)
|
|
FIRST
QUARTER
|
|
|
|
|
|
%
Change
|
|
|
2018
|
|
2017
|
Reported
|
Operational
(1)
|
Currency
|
SURGERY
|
|
|
|
|
|
|
|
US
|
|
993
|
|
995
|
-0.2%
|
-0.2%
|
-
|
Intl
|
|
1,430
|
|
1,276
|
12.1%
|
3.9%
|
8.2%
|
WW
|
|
2,423
|
|
2,271
|
6.7%
|
2.1%
|
4.6%
|
ADVANCED
|
|
|
|
|
|
|
|
US
|
|
393
|
|
392
|
0.3%
|
0.3%
|
-
|
Intl
|
|
573
|
|
485
|
18.1%
|
9.4%
|
8.7%
|
WW
|
|
966
|
|
877
|
10.1%
|
5.3%
|
4.8%
|
GENERAL
|
|
|
|
|
|
|
|
US
|
|
423
|
|
423
|
0.0%
|
0.0%
|
-
|
Intl
|
|
704
|
|
651
|
8.1%
|
0.0%
|
8.1%
|
WW
|
|
1,127
|
|
1,074
|
4.9%
|
0.0%
|
4.9%
|
SPECIALTY
|
|
|
|
|
|
|
|
US
|
|
177
|
|
180
|
-1.7%
|
-1.7%
|
-
|
Intl
|
|
153
|
|
140
|
9.3%
|
2.7%
|
6.6%
|
WW
|
|
330
|
|
320
|
3.1%
|
0.2%
|
2.9%
|
VISION
CARE(7)
|
|
|
|
|
|
|
|
US
|
|
440
|
|
305
|
44.3%
|
44.3%
|
-
|
Intl
|
|
675
|
|
493
|
36.9%
|
28.3%
|
8.6%
|
WW
|
|
1,115
|
|
798
|
39.7%
|
34.4%
|
5.3%
|
CONTACT LENSES /
OTHER
|
|
|
|
|
|
|
|
US
|
|
309
|
|
256
|
20.7%
|
20.7%
|
-
|
Intl
|
|
498
|
|
427
|
16.6%
|
9.3%
|
7.3%
|
WW
|
|
807
|
|
683
|
18.2%
|
13.6%
|
4.6%
|
SURGICAL
|
|
|
|
|
|
|
|
US
|
|
131
|
|
49
|
*
|
*
|
-
|
Intl
|
|
177
|
|
66
|
*
|
*
|
*
|
WW
|
|
308
|
|
115
|
*
|
*
|
*
|
|
|
|
|
|
|
|
|
TOTAL MEDICAL
DEVICES
|
|
|
|
|
|
|
|
US
|
|
3,161
|
|
3,092
|
2.2%
|
2.2%
|
-
|
Intl
|
|
3,606
|
|
3,201
|
12.7%
|
4.2%
|
8.5%
|
WW
|
|
$
6,767
|
|
6,293
|
7.5%
|
3.2%
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Percentage greater
than 100% or not meaningful
|
(1) Operational
growth excludes the effect of translational currency
|
(2)
Unaudited
|
|
|
|
|
|
|
|
(3) Reported as U.S.
sales
|
(4) Products acquired
from Actelion acquisition on June 16, 2017
|
(5) Prior year
amounts have been reclassified to conform to current year product
disclosure
|
(6) All sales related
to the Cerenovus business (previously included in Spine & Other
in Orthopaedics) were reclassified to Interventional Solutions
(previously referred to as Cardiovascular). See supplemental
schedule.
|
(7) Includes products
acquired from Abbott Medical Optics (AMO) acquisition on February
27, 2017
|
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SOURCE Johnson & Johnson