Johnson & Johnson 2nd-qtr earnings slump on charges and currencies

US health care giant Johnson & Johnson (NYSE: JNJ) yesterday announced second-quarter 2012 financial results, showing that net earnings and diluted earnings per share were $1.4 billion and $0.50, respectively, a slump of 49% on the like year-earlier quarter.

The results were hit by special items of $2.2 billion, including partial write-down of in-process research and development and intangible assets related to the Crucell vaccines business, an increase in the accrual for the potential settlement of previously disclosed civil litigation matters, and transaction and integration costs related to the acquisition of Synthes. Group sales for the quarter dipped 0.7% to $16.5 billion. Nevertheless, J&J’s shares edged 0.8% higher to $69 by close of trading yesterday.

Operational results increased 3.5% and the negative impact of currency was 4.2%. Domestic sales decreased 1.2%. International sales decreased 0.4%, reflecting operational growth of 7.1% and a negative currency impact of 7.5%. Sales included the impact of the recently completed acquisition of Synthes, which contributed 1.2% to worldwide operational sales growth.

Cuts earnings guidance