Johnson & Johnson's 3rd-qtr 2010 profit edges higher, despite lower sales, but Pharma up

US health care giant Johnson & Johnson (NYSE: JNJ) posted slightly better than expected third-quarter 2010 results, with profit slightly higher year-on-year despite lower group sales, which have been impacted by a series of nutrition and non-prescription product recalls resulting in consumer wariness.

J&J said sales for the quarter were $15.0 billion, a decrease of 0.7% as compared to the third quarter of 2009. Operational results increased 0.1% and the negative impact of currency was 0.8%. Domestic revenues sales declined 2.5%, while international turnover increased 1.1%, reflecting operational growth of 2.6% and a negative currency impact of 1.5%. Net earnings and diluted earnings per share were $3.4 billion and $1.23, respectively, representing increases of 2.2% and 2.5%, compared to the same period in 2009.

Nevertheless, sales and profit figures beat the expectations of analysts polled by Thomson Reuters, who anticipated earnings per share of $1.15 and revenue of $15.18 billion.