Johnson & Johnson reported a net loss of $68 million in the first quarter to the end of March because of a one-time charge related to its talc baby powder liabilities, costs of the coming spin-off of its consumer health business and Covid-19 vaccine related costs.
This month, the company agreed to pay $8.9 billion to resolve all cancer lawsuits tied to its talc-based powders.
The company reported a net profit of more than $5.1 billion in the same period last year.
Revenue during the first quarter increased 5.6 per cent annually to more than $24.7 billion, exceeding analysts’ expectations of $23.6 billion, J&J said in a statement on Tuesday.
The New Jersey company earned more than half of its revenue, or nearly $12.5 billion, from the US markets and the rest from the international markets in the first quarter.
The company’s shares, which have dropped almost 10 per cent in the past year, fell 2.7 per cent to trade at $161.18 a share at 7.25pm UAE time on Tuesday.
“Our first quarter results demonstrate strong performance across all three segments of our business,” Joaquin Duato, chairman and chief executive of the company, said.
The company expects 2023 financial year revenue of between $97.9 billion and $98.9 billion, almost $1 billion higher than the guidance provided in January.
It also improved its full-year adjusted earnings forecast to $10.60 to $10.70 a share, from an earlier outlook of $10.45 to $10.65.
In the January-March period, J&J earned more than 54 per cent of its revenue from the pharmaceutical business that developed the Covid-19 vaccine.
The division added about $13.4 billion, 4.2 per cent more year-on-year, to overall sales in the quarter.
Meanwhile, the company’s Covid-19 vaccine related costs jumped to $444 million in the last quarter.
It included “remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the company's completion of its vaccine contractual commitments”, J&J said.
Sales in the company’s MedTech business rose 7.3 per cent annually to more than $7.4 billion in the first quarter. Its growth was driven primarily by products related to interventional solutions, contact lenses, general surgery and orthopaedics, J&J said.
Its consumer health business, which makes products such as Neutrogena face wash and Listerine, contributed to about 15.5 per cent, or nearly $3.9 billion of overall sales during the quarter.
J&J said the segment’s growth was propelled by the sale of over-the-counter products.
The company aims to spin off its consumer health business into a publicly traded company this year.
“With this momentum, I look forward to the remainder of the year, one filled with exciting catalysts that will create both near- and long-term value for patients and all of our stakeholders,” said Mr Duato.
J&J also approved a 5.3 per cent quarterly dividend increase to $1.19 per share.
COMPANY%20PROFILE
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The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
More from Armen Sarkissian
Sheikh Zayed's poem
When it is unveiled at Abu Dhabi Art, the Standing Tall exhibition will appear as an interplay of poetry and art. The 100 scarves are 100 fragments surrounding five, figurative, female sculptures, and both sculptures and scarves are hand-embroidered by a group of refugee women artisans, who used the Palestinian cross-stitch embroidery art of tatreez. Fragments of Sheikh Zayed’s poem Your Love is Ruling My Heart, written in Arabic as a love poem to his nation, are embroidered onto both the sculptures and the scarves. Here is the English translation.
Your love is ruling over my heart
Your love is ruling over my heart, even a mountain can’t bear all of it
Woe for my heart of such a love, if it befell it and made it its home
You came on me like a gleaming sun, you are the cure for my soul of its sickness
Be lenient on me, oh tender one, and have mercy on who because of you is in ruins
You are like the Ajeed Al-reem [leader of the gazelle herd] for my country, the source of all of its knowledge
You waddle even when you stand still, with feet white like the blooming of the dates of the palm
Oh, who wishes to deprive me of sleep, the night has ended and I still have not seen you
You are the cure for my sickness and my support, you dried my throat up let me go and damp it
Help me, oh children of mine, for in his love my life will pass me by.
KEY HIGHLIGHTS
Healthcare spending to double to $2.2 trillion rupees
Launched a 641billion-rupee federal health scheme
Allotted 200 billion rupees for the recapitalisation of state-run banks
Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets
RESULT
Bayern Munich 5 Eintrracht Frankfurt 2
Bayern: Goretzka (17'), Müller (41'), Lewandowski (46'), Davies (61'), Hinteregger (74' og)
Frankfurt: Hinteregger (52', 55')
RESULTS
6.30pm: Maiden (TB) Dh 82,500 (Dirt) 1.600m
Winner: Miller’s House, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Maiden (TB) Dh 82,500 (D) 2,000m
Winner: Kanood, Adrie de Vries, Fawzi Nass.
7.50pm: Handicap (TB) Dh 82,500 (D) 1,600m
Winner: Gervais, Sandro Paiva, Ali Rashid Al Raihe.
8.15pm: The Garhoud Sprint Listed (TB) Dh 132,500 (D) 1,200m
Winner: Important Mission, Royston Ffrench, Salem bin Ghadayer.
8.50pm: The Entisar Listed (TB) Dh 132,500 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
9.25pm: Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
Brief scores:
Liverpool 3
Mane 24', Shaqiri 73', 80'
Manchester United 1
Lingard 33'
Man of the Match: Fabinho (Liverpool)
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
What She Ate: Six Remarkable Women & the Food That Tells Their Stories
Laura Shapiro
Fourth Estate
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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