Johnson & Johnson Reports Fourth-Quarter and Full-Year 2007 Results
Net earnings and diluted earnings per share for the fourth quarter of 2007were $2.4 billion and $.82 respectively, representing increases of 9.5% and10.8% respectively, compared to the same period in 2006. Net earnings for thefourth quarter of 2007 included an after-tax, non-cash charge of $441 millionfor the write-down of the intangible asset related to NATRECOR (nesiritide)and a tax gain of $267 million associated with the restructuring of certaininternational subsidiaries. Net earnings for the fourth quarter of 2006included an after-tax charge for in-process research and development of $217million associated with the acquisition of Pfizer Consumer Healthcare.Excluding these special items, 2007 fourth-quarter net earnings were $2.5billion and earnings per share were $.88, representing increases of 6.8% and8.6%, respectively, as compared with the same period in 2006. *
Net earnings and diluted earnings per share for the year, as reported,were $10.6 billion and $3.63, decreases of 4.3% and 2.7%, respectively, ascompared with 2006. Full-year 2007 net earnings included after-tax charges of$807 million for in-process research and development; $528 million forrestructuring; an after-tax, non-cash charge of $441 million for the write-down of the intangible asset related to NATRECOR (nesiritide); and a gain of$267 million for international tax restructuring. Full-year 2006 net earningsincluded after-tax charges for in-process research and development of $448million and an after-tax gain of $368 million associated with the terminationof the Guidant acquisition agreement. Excluding these special items, netearnings for 2007 were $12.1 billion and earnings per share were $4.15,representing increases of 8.6% and 10.4%, respectively, as compared with thesame period in 2006. * The Company announced its earnings guidance for full-year 2008 of $4.39 to $4.44 per share, which excludes the impact of in-processresearch and development charges or other special items.
"Despite challenges in certain markets, our broad base of businessesallowed us to achieve solid results in 2007, building on our foundation oflong-term profitable growth," said William C. Weldon, Chairman and ChiefExecutive Officer. "It was a year of significant progress in our pipeline; thesuccessful integration of Pfizer Consumer Healthcare; and the creation of neworganizational structures focused on future growth."
Worldwide, the Medical Devices and Diagnostics segment achieved annualsales of $21.7 billion in 2007, representing an increase over the prior yearof 7.2% with operational growth of 3.9% and a positive currency impact of3.3%. Domestic sales increased 3.2%, while international sales increased 11.1%(4.6% from operations and 6.5% from currency).
Primary contributors to the operational growth included Vistakon'sdisposable contact lenses; LifeScan's blood glucose monitoring and insulindelivery products; Ethicon Endo-Surgery's minimally invasive products; DePuy'sorthopaedic joint reconstruction and sports medicine businesses; Ortho-Clinical Diagnostics' professional products; and Ethicon's wound care andwomen's health products. G
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