Business & Finance

Pharma giant J&J boosts earnings despite sales drop

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WASHINGTON: Health care and pharmaceuticals giant Johnson & Johnson reported a 12.5 percent increase in earnings for the first quarter on Tuesday after seeing global sales shrink from a year earlier.

Sales fell 0.2 percent to $16.14 billion in the period to March 30, mainly due to a 5.1 percent drop in sales in the US market.

International sales were up 4.1 percent.

But net earnings rose to $3.91 billion from $3.48 billion a year earlier, translating to a 12.8 percent rise in earnings per share to $1.41 from $1.25.

"We continue to bring meaningful innovations to our patients and customers through the strong performance of our recently launched products," said chief executive William Weldon in a statement.

The results were heavily driven by the trends in the company's $6.1 billion in pharmaceutical sales. In the US, sales in this sector slumped 10.8 percent, while international sales jumped 16.5 percent -- and 19.6 percent before the negative impact of currency swings.

Copyright AFP (Agence France-Presse), 2012