Ex-US drug sales boost J&J's 1st-qtr 2008 earnings 40%, despite generic competition

Johnson & Johnson's first-quarter 2008 results beat expectations as the US health care major saw strong sales of consumer products and a good performance in foreign markets.

During the period, net earnings totaled $3.6 billion, or $1.26 per share, versus $2.57 billion or $0.88 per share, in the first quarter of 2007, which included an after-tax in-process R&D charge of $807.0 million associated with the acquisition of Conor Medsystems (Marketletter November 27, 2006). Excluding this charge, net earnings for the current quarter and diluted earnings per share represent increases of 6.4% and 8.6%, respectively, on the year before. The weak dollar helped group revenues jump 7.7% to $16.2 billion.

Analysts polled by Thomson Financial had predicted earnings of $1.20 per share on income of $15.8 billion. According to the firm, strong group sales for the quarter are a result of the strong performance following the US launch of Zyrtec (cetirizine HCl), an over-the-counter allergy treatment; Listerine antiseptic mouthrinse and whitening products; Baby Care products; and the skin care lines Neutrogena, Clean & Clear and Aveeno.