Tallahassee Journal

Stronger dollar hurts J&J’s quarterly sales

Stronger dollar hurts J&J’s quarterly sales

Johnson & Johnson reported lower-than-expected quarterly sales as a stronger dollar offset higher sales of the Band-Aid maker’s new drugs and older treatments. The company’s international sales fell about 7 percent to $9.65 billion in the fourth quarter, accounting for about half of its total sales.102345650-451616322.530x298

The dollar gained nearly 13 percent against a basket of major currencies in 2014, its strongest performance since 1997. Revenue in J&J’s pharmaceuticals business rose 9.6 percent in the quarter, driven by higher sales of new drugs such as hepatitis C drug Olysio and older treatments such as psoriasis drug Stelara. The business accounts for about 44 percent of the company’s total sales.

The company’s net profit fell about 28 percent to $2.52 billion, or 89 cents per share, including a $1.1 billion charge related to its acquisition of Synthes. Excluding items, J&J earned $1.27 per share. Total sales fell 0.6 percent to $18.25 billion.

Analysts on average had expected a profit of $1.26 per share and revenue of $18.55 billion. J&J forecast a profit of $6.12-$6.27 per share for 2015. Chief Financial Officer Dominic Caruso warned in October that a strong dollar could hurt the company’s 2015 earnings by 15-20 cents per share. J&J’s shares were down 1 percent at $102.45 in premarket trading on Tuesday.