-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gn+9wg2h36/pJebITHSQVFZzvVHzdeCvtezAw9bmD6zt83Y0F9Fo6955Hf/RFh6q pMkruX6dBHCSZKWr2yoHkg== 0000200406-05-000131.txt : 20051018 0000200406-05-000131.hdr.sgml : 20051018 20051018093308 ACCESSION NUMBER: 0000200406-05-000131 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051018 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051018 DATE AS OF CHANGE: 20051018 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOHNSON & JOHNSON CENTRAL INDEX KEY: 0000200406 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 221024240 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0103 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03215 FILM NUMBER: 051142094 BUSINESS ADDRESS: STREET 1: ONE JOHNSON & JOHNSON PLZ CITY: NEW BRUNSWICK STATE: NJ ZIP: 08933 BUSINESS PHONE: 7325242454 8-K 1 eightkcoverqthree.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 18, 2005 JOHNSON & JOHNSON (Exact name of registrant as specified in its charter) New Jersey 1-3215 22-1024240 (State or other Commission (I.R.S. Employer jurisdiction File Number) Identification No.) of incorporation) One Johnson & Johnson Plaza, New Brunswick, New Jersey 08933 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (732) 524-0400 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c) Item 2.02 Results of Operations and Financial Condition On October 18, 2005, Johnson & Johnson issued the attached press release announcing its sales and earnings for the third quarter ended October 2, 2005. Item 9.01 Financial Statements and Exhibits Exhibit No. Description of Exhibit 99.15 Press Release dated October 18, 2005 for the period ended October 2, 2005. 99.2O Unaudited Comparative Supplementary Sales Data and Condensed Consolidated Statement of Earnings for the third quarter. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. JOHNSON & JOHNSON Date: October 18, 2005 By: /s/ Stephen J. Cosgrove Stephen J. Cosgrove Chief Accounting Officer EX-99.15 OTH FIN ST 2 ninetyninefifteenqthree.txt Exhibit 99.15 FOR IMMEDIATE RELEASE Third Quarter 2005 Financial Results Johnson & Johnson Reports 2005 Third Quarter EPS Rose 11.5% on Sales Increase of 6.6% New Brunswick, NJ (October 18, 2005) - Johnson & Johnson today announced sales for the third quarter of $12.3 billion, an increase of 6.6% over the prior year. The increase represented operational growth of 5.8% and a favorable currency impact of .8%. Domestic sales were up 2.6%, while international sales increased 12.2%, reflecting operational growth of 10.3% and a positive currency impact of 1.9%. Net earnings and diluted earnings per share for the third quarter were $2.6 billion and $.87, increases of 12.1% and 11.5%, respectively, as compared to the same period in 2004. Prior-year third quarter net earnings included after-tax in- process research and development charges of $12 million associated with the acquisition of Scott Lab, Inc. "Our broadly based approach to businesses in support of human health care continues to serve us well," said William C. Weldon, Chairman and Chief Executive Officer. "The strong performance of our worldwide Medical Devices and Diagnostics and Consumer segments resulted in solid growth for Johnson & Johnson despite the competitive challenges that our Pharmaceutical business has experienced." Worldwide Medical Devices and Diagnostics sales of $4.6 billion for the third quarter represented an increase over the prior year of 14.3% with operational growth of 13.7% and a positive impact from currency of .6%. Domestic sales increased 14.1%, while international sales increased 14.5% (13.3% from operations and 1.2% from currency). Cordis' circulatory disease management products were a key contributor to the segment results with the primary driver being the CYPHER Sirolimus-eluting Coronary Stent, which reduces restenosis (reblockage) of a treated coronary artery. CYPHER is the worldwide leader in drug-eluting stents having now been used to treat more than 1.5 million patients with coronary artery disease. Also contributing to the strong performance of the segment were the results from DePuy's orthopaedic joint reconstruction and spinal products, Ortho-Clinical Diagnostics' professional diagnostic products and Vistakon's disposable contact lenses. Worldwide Pharmaceutical sales of $5.5 billion for the third quarter represented a decrease of .5% as compared to the prior year with an operational decline of 1.1% and a positive impact from currency of .6%. Domestic sales decreased 4.5%, while international sales increased 7.8% (6.0% from operations and 1.8% from currency). Sales results for DURAGESIC (fentanyl transdermal system), a transdermal patch for chronic pain; ULTRACET (acetaminophen/tramadol hydrochloride), an analgesic, and SPORANOX (itraconazole), an antifungal, were all negatively impacted by generic competition in the U.S. market. Substantially offsetting the impact of generic competition was the strong performance of RISPERDAL (risperidone), an antipsychotic medication; REMICADE (infliximab), a biologic approved for the treatment of a number of Immune Mediated Inflammatory Diseases (I.M.I.D.); TOPAMAX (topiramate), an antiepileptic and a treatment for the prevention of migraine headaches, and LEVAQUIN (levofloxacin), an anti-infective. During the quarter, the Company announced that it had received U.S. Food and Drug Administration (FDA) approval for LEVAQUIN (levofloxacin) 750 mg tablets as a five-day treatment for acute bacterial sinusitis and REMICADE (infliximab) for the treatment of ulcerative colitis (UC), making REMICADE the first and only biologic approved for UC, a chronic inflammatory bowel disease. In addition, the Company submitted a supplemental Biologics License Application to the FDA for REMICADE (infliximab) for the treatment of psoriasis. Worldwide Consumer segment sales of $2.2 billion for the third quarter represented an increase over the prior year of 10.2% with operational growth of 8.5% and a positive impact from currency of 1.7%. Domestic sales increased 5.1%, while international sales increased 15.5% (12.1% from operations and 3.4% from currency). Strong growth in Consumer sales was achieved in the skin care lines of NEUTROGENA, AVEENO and CLEAN & CLEAR, as well as with McNeil Nutritional's SPLENDA (sucralose) sweetener. Johnson & Johnson is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical and medical devices and diagnostics markets. The more than 200 Johnson & Johnson operating companies employ approximately 115,000 men and women in 57 countries and sell products throughout the world. NOTE TO INVESTORS: Johnson & Johnson will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Daylight Savings Time. A simultaneous webcast of the call for interested investors and others may be accessed by clicking on the webcast icon from the jnj.com Homepage or by clicking on Calendar of Events in the Investor Relations section of the Web site. A replay will be available approximately two hours after the live webcast by clicking on "Webcasts/Presentations" in the Investor Relations section. (This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99(b) of the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2005. Copies of this Form 10-K are available online at www.sec.gov or on request from the Company. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.) EX-99.2O OTH FIN ST 3 ninetyninetwentyqthree.txt Exhibit 99-2O Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) THIRD QUARTER 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by segment of business Consumer U.S. $1,075 $1,023 5.1 % 5.1 - International 1,156 1,001 15.5 12.1 3.4 2,231 2,024 10.2 8.5 1.7 Pharmaceutical U.S. 3,527 3,694 (4.5) (4.5) - International 1,930 1,791 7.8 6.0 1.8 5,457 5,485 (0.5) (1.1) 0.6 Med Device & Diagnostics U.S. 2,365 2,073 14.1 14.1 - International 2,257 1,971 14.5 13.3 1.2 4,622 4,044 14.3 13.7 0.6 U.S. 6,967 6,790 2.6 2.6 - International 5,343 4,763 12.2 10.3 1.9 Worldwide $12,310 $11,553 6.6 % 5.8 0.8 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) NINE MONTHS 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by segment of business Consumer U.S. $3,281 3,090 6.2 % 6.2 - International 3,508 2,981 17.7 13.1 4.6 6,789 6,071 11.8 9.5 2.3 Pharmaceutical U.S. 10,905 10,980 (0.7) (0.7) - International 5,935 5,308 11.8 7.9 3.9 16,840 16,288 3.4 2.1 1.3 Med Device & Diagnostics U.S. 7,104 6,306 12.7 12.7 - International 7,171 5,931 20.9 17.1 3.8 14,275 12,237 16.7 14.9 1.8 U.S. 21,290 20,376 4.5 4.5 - International 16,614 14,220 16.8 12.8 4.0 Worldwide $37,904 34,596 9.6 % 7.9 1.7 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) THIRD QUARTER 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by geographic area U.S. $6,967 $6,790 2.6 % 2.6 - Europe 2,860 2,638 8.4 8.9 (0.5) Western Hemisphere 783 639 22.5 10.5 12.0 excluding U.S. Asia-Pacific, Africa 1,700 1,486 14.4 12.7 1.7 International 5,343 4,763 12.2 10.3 1.9 Worldwide $12,310 $11,553 6.6 % 5.8 0.8 Johnson & Johnson and Subsidiaries Supplementary Sales Data (Unaudited; Dollars in Millions) NINE MONTHS 2005 2004 Percent Percent Percent Change Change Change Total Operations Currency Sales to customers by geographic area U.S. $21,290 $20,376 4.5 % 4.5 - Europe 9,222 8,124 13.5 10.1 3.4 Western Hemisphere 2,259 1,858 21.6 12.2 9.4 excluding U.S. Asia-Pacific, Africa 5,133 4,238 21.1 18.3 2.8 International 16,614 14,220 16.8 12.8 4.0 Worldwide $37,904 $34,596 9.6 % 7.9 1.7 Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) THIRD QUARTER 2005 2005 2004 2004 Percent Amount Percent Amount Percent Increase to to (Decrease) Sales Sales Sales to customers $12,310 100.0 $11,553 100.0 6.6 Cost of products 3,340 27.1 3,187 27.6 4.8 sold Selling, marketing 4,078 33.1 3,854 33.3 5.8 and administrative expenses Research Expense 1,502 12.2 1,198 10.4 25.4 In-process research - - 18 0.2 & development Interest (income) (101) (0.8) (19) (0.2) expense, net Other (income) (63) (0.5) 41 0.4 expense, net Earnings before 3,554 28.9 3,274 28.3 8.6 provision for taxes on income Provision for taxes 929 7.6 933 8.0 (0.4) on income Net earnings $2,625 21.3 $2,341 20.3 12.1 Net earnings per $0.87 $0.78 11.5 share (Diluted) Average shares 3,017.1 3,009.0 outstanding (Diluted) Effective tax rate 26.1 % 28.5 % Adjusted earnings before provision for taxes and net earnings (A) Earnings before $3,554 28.9 $3,292(1) 28.5 8.0 provision for taxes on income Net earnings $2,625 21.3 $2,353(1) 20.4 11.6 Net earnings per $0.87 $0.78(1) 11.5 share (Diluted) Effective tax rate 26.1 % 28.5 % (1) The difference between as reported earnings before provision for taxes on income and net earnings and adjusted earnings before provision for taxes on income and net earnings is $18 million and $12 million respectively, which is in-process research & development charges. Johnson & Johnson and Subsidiaries Condensed Consolidated Statement of Earnings (Unaudited; in Millions Except Per Share Figures) NINE MONTHS 2005 2005 2004 2004 Percent Amount Percent Amount Percent Increase to to (Decrease) Sales Sales Sales to customers $37,904 100.0 $34,596 100.0 9.6 Cost of products 10,330 27.3 9,716 28.1 6.3 sold Selling, marketing 12,315 32.5 11,205 32.4 9.9 and administrative expenses Research Expense 4,336 11.4 3,476 10.0 24.7 In-process 353 0.9 18 0.1 research & development Interest (income) (264) (0.7) 4 0.0 expense, net Other (income) (184) (0.5) (36) (0.1) expense, net Earnings before 11,018 29.1 10,213 29.5 7.9 provision for taxes on income Provision for 2,790 7.4 2,921 8.4 (4.5) taxes on income Net earnings $8,228 21.7 $7,292 21.1 12.8 Net earnings per $2.73 $2.43 12.3 share (Diluted) Average shares 3,019.0 3,004.4 outstanding (Diluted) Effective tax rate 25.3 % 28.6 % Adjusted earnings before provision for taxes and net earnings (A) Earnings before $11,371(1) 30.0 $10,231(2) 29.6 11.1 provision for taxes on income Net earnings $8,356(1) 22.0 $7,304(2) 21.1 14.4 Net earnings per $2.77(1) $2.43(2) 14.0 share (Diluted) Effective tax 26.5 % 28.6 % rate (1) The difference between as reported earnings before provision for taxes on income and net earnings and adjusted earnings before provision for taxes on income and net earnings is the exclusion of IPR&D of $353 million before tax with no tax benefit, or $0.12 per share, and the exclusion of a $225 million tax gain, or $0.08 per share, due to the reversal of a tax liability related to a technical correction associated with the American Jobs Creation Act of 2004. (2) The difference between as reported earnings before provision for taxes on income and net earnings and adjusted earnings before provision for taxes on income and net earnings is $18 million and $12 million respectively, which is in-process research & development charges. (A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, they may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as business development activities (including IPR&D at acquisition or upon attainment of milestones and any extraordinary expenses), strategic developments (including restructuring and product line changes), significant litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. These non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses the performance of the Company. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as the effects of an acquisition, merger-related or other restructuring charges, or amortization of purchased intangibles, and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. -----END PRIVACY-ENHANCED MESSAGE-----