2018 Third-Quarter Sales of $20.3 Billion Increased 3.6% versus 2017
2018 Third-Quarter Sales of $20.3 Billion Increased 3.6% versus 2017
2018 Third-Quarter EPS was $1.44
2018 Adjusted Third-Quarter EPS of $2.05 increased 7.9%*
Strong Operational Sales and Adjusted EPS Growth*
Company Increased Sales and EPS Guidance
NEW BRUNSWICK, N.J., Oct. 16, 2018 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $20.3 billion for the third quarter of 2018, an increase of 3.6% as compared to the third quarter of 2017. Operational sales results increased 5.5%, partially offset by the negative impact of currency of 1.9%. Domestic sales increased 3.6%. International sales increased 3.5%, reflecting operational growth of 7.5% and a negative currency impact of 4.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.1%, domestic sales increased 3.9% and international sales increased 8.5%.*
Net earnings and diluted earnings per share for the third quarter of 2018 were $3.9 billion and $1.44, respectively. Third-quarter 2018 net earnings included after-tax intangible amortization expense of approximately $1.0 billion and a net charge for after-tax special items of approximately $0.7 billion, primarily consisting of a non-cash charge attributed to a partial write-down of an in-process research and development asset associated with the acquisition of Alios BioPharma Inc. Third-quarter 2017 net earnings included after-tax intangible amortization expense of approximately $0.9 billion and a charge for after-tax special items of approximately $0.5 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.6 billion and adjusted diluted earnings per share were $2.05, representing increases of 7.3% and 7.9%, respectively, as compared to the same period in 2017.* On an operational basis, adjusted diluted earnings per share also increased 9.5%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.
"We are pleased with our strong third-quarter performance, which reflects continued above-market growth in our Pharmaceutical business, accelerating sales momentum in our Consumer business and consistent progress in our Medical Devices business," said Alex Gorsky, Chairman and Chief Executive Officer. "I'm confident that with our collaborative and inspired J&J colleagues around the world, unique broad-based business model and strategic investments in innovation, we are well positioned for success today and into the future."
The Company issued sales guidance for the full-year 2018 in a range of $81.0 to $81.4 billion. This reflects an increase in expected operational growth to a range of 5.5% to 6.0%, partially offset by the estimated lower favorable impact of currency. Additionally, the Company increased its adjusted earnings guidance for full-year 2018 to a range of $8.13 to $8.18 per share. This reflects an increase in expected operational EPS growth to a range of 9.3% to 10.0%.
Segment Sales Performance
Worldwide Consumer sales of $3.4 billion for the third quarter 2018 represented an increase of 1.8% versus the prior year, consisting of an operational increase of 4.9% and a negative impact from currency of 3.1%. Domestic sales increased 6.6%, while international sales decreased 1.3%, which reflected an operational increase of 3.7% and a negative currency impact of 5.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.1%, with domestic sales increasing 6.4% and international sales increasing 5.9%.*
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over-the-counter products including MOTRIN and TYLENOL analgesics, ZYRTEC upper respiratory and IMODIUM digestive health products; beauty products including NEUTROGENA, OGX and DR. CI LABO; as well as domestic sales of JOHNSON's baby care products.
During the quarter, the acquisition of Zarbee's, Inc., a leader in naturally-based healthcare products, was completed.
Worldwide Pharmaceutical sales of $10.3 billion for the third quarter 2018 represented an increase of 6.7% versus the prior year with an operational increase of 8.2% and a negative impact from currency of 1.5%. Domestic sales increased 4.8%, international sales increased 9.5%, which reflected an operational increase of 13.2% and a negative currency impact of 3.7%. Acquisitions and divestitures had a negligible impact to sales growth in the quarter.
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, TREMFYA (guselkumab), for the treatment of adults living with moderate to severe plaque psoriasis, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, SIMPONI/SIMPONI ARIA (golimumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression, and UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization.
During the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for IMBRUVICA (ibrutinib) in combination with rituximab as a non-chemotherapy combination regimen for patients with Waldenström's Macroglobulinemia, a rare blood cancer. The European Commission (EC) granted marketing authorization for DARZALEX (daratumumab) in combination with VELCADE (bortezomib), a proteasome inhibitor, melphalan, an alkylating agent, and prednisone for the treatment of newly diagnosed multiple myeloma patients who are ineligible for autologous stem cell transplant. In addition, the FDA approved and the EC granted marketing authorization for SYMTUZA (D/C/F/TAF), a complete darunavir-based single-tablet regimen for the treatment of HIV-1 infection.
A New Drug Application was submitted to the FDA for esketamine nasal spray, a rapidly acting antidepressant for treatment-resistant depression in adults and erdafitinib, a once-daily, oral pan-fibroblast growth factor receptor (FGFR) inhibitor for the treatment of locally advanced or metastatic urothelial cancer. A supplemental New Drug Application was submitted to the FDA seeking to broaden the use of IMBRUVICA (ibrutinib) in chronic lymphocytic leukemia or small lymphocytic lymphoma to include combination use with a non-chemotherapy agent, obinutuzumab, in the frontline setting. A Type II Variation was submitted to the European Medicines Agency (EMA) seeking to expand the indication of OPSUMIT (macitentan) to include the treatment of adults with inoperable chronic thromboembolic pulmonary hypertension (CTEPH), WHO Group 4, to improve exercise capacity and pulmonary vascular resistance. In addition, the Company also submitted a supplemental Biologics License Application to the FDA and a Type II Variation to the EMA seeking approval of a split dosing regimen for DARZALEX (daratumumab).
Subsequent to the quarter, the FDA approved an additional indication for XARELTO (rivaroxaban) to reduce the risk of major cardiovascular (CV) events, such as CV death, myocardial infarction and stroke, in people with chronic coronary or peripheral artery disease. Additionally, a Marketing Authorization Application was submitted to the EMA for esketamine nasal spray, a rapidly acting antidepressant for treatment-resistant depression in adults. The Company also entered into an exclusive worldwide license agreement with Arrowhead Pharmaceuticals, Inc. to develop and commercialize a new treatment for chronic Hepatitis B viral infection.
Worldwide Medical Devices sales of $6.6 billion for the third quarter 2018 represented a decrease of 0.2% versus the prior year consisting of an operational increase of 1.7% and a negative currency impact of 1.9%. Domestic sales increased 0.3%, while international sales decreased 0.6%, which reflected an operational increase of 3.0% and a negative currency impact of 3.6%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.9%, domestic sales increased 1.2% and international sales increased 4.4%.*
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by the growth of electrophysiology products in the Interventional Solutions business; ACUVUE contact lenses in the Vision business; endocutters and biosurgicals in the Advanced Surgery business; and wound closure products in the General Surgery business, partially offset by declines in the Diabetes Care business.
During the quarter, the Company received European CE mark approval for its BRAVO Flow Diverter for use in the treatment of patients suffering from intracranial aneurysms. In addition, the acquisition of Emerging Implant Technologies GmbH, a privately held manufacturer of 3D-printed titanium interbody implants for spinal fusion surgery, was completed. Lastly, the Company accepted the binding offer from Fortive Corporation to acquire its Advanced Sterilization Products business for an aggregate value of approximately $2.8 billion, subject to customary adjustments.
Subsequent to the quarter, the Company announced the completion of the divestiture of its LifeScan business to Platinum Equity for approximately $2.1 billion, subject to customary adjustments.
About Johnson & Johnson
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.
* Operational sales growth excluding the net impact of acquisitions and divestitures, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at www.investor.jnj.com. Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.
Johnson & Johnson will conduct a conference call with investors to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.
Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can be found on the company's website at www.investor.jnj.com.
NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including unexpected clinical trial results, additional analysis of existing clinical data, uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; the impact of business combinations and divestitures; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws, global health care reforms and import/export and trade laws; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the company's most recently filed Quarterly Report on Form 10-Q and in the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)
THIRD QUARTER
NINE MONTHS
Percent Change
Percent Change
2018
2017
Total
Operations
Currency
2018
2017
Total
Operations
Currency
Sales to customers by
segment of business
Consumer
U.S.
$ 1,370
1,285
6.6
%
6.6
-
$ 4,282
4,186
2.3
%
2.3
-
International
2,045
2,071
(1.3)
3.7
(5.0)
6,035
5,876
2.7
1.6
1.1
3,415
3,356
1.8
4.9
(3.1)
10,317
10,062
2.5
1.9
0.6
Pharmaceutical
U.S.
6,097
5,816
4.8
4.8
-
17,350
15,698
10.5
10.5
-
International
4,249
3,879
9.5
13.2
(3.7)
13,194
10,877
21.3
17.5
3.8
10,346
9,695
6.7
8.2
(1.5)
30,544
26,575
14.9
13.4
1.5
Medical Devices
U.S.
3,197
3,189
0.3
0.3
-
9,623
9,510
1.2
1.2
-
International
3,390
3,410
(0.6)
3.0
(3.6)
10,703
10,108
5.9
3.2
2.7
6,587
6,599
(0.2)
1.7
(1.9)
20,326
19,618
3.6
2.2
1.4
U.S.
10,664
10,290
3.6
3.6
-
31,255
29,394
6.3
6.3
-
International
9,684
9,360
3.5
7.5
(4.0)
29,932
26,861
11.4
8.6
2.8
Worldwide
$ 20,348
19,650
3.6
%
5.5
(1.9)
$ 61,187
56,255
8.8
%
7.5
1.3
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)
THIRD QUARTER
NINE MONTHS
Percent Change
Percent Change
2018
2017
Total
Operations
Currency
2018
2017
Total
Operations
Currency
Sales to customers by
geographic area
U.S.
$ 10,664
10,290
3.6
%
3.6
-
$ 31,255
29,394
6.3
%
6.3
-
Europe
4,416
4,308
2.5
5.1
(2.6)
14,023
12,398
13.1
7.1
6.0
Western Hemisphere excluding U.S.
1,550
1,569
(1.2)
11.2
(12.4)
4,657
4,522
3.0
8.4
(5.4)
Asia-Pacific, Africa
3,718
3,483
6.7
8.6
(1.9)
11,252
9,941
13.2
10.8
2.4
International
9,684
9,360
3.5
7.5
(4.0)
29,932
26,861
11.4
8.6
2.8
Worldwide
$ 20,348
19,650
3.6
%
5.5
(1.9)
$ 61,187
56,255
8.8
%
7.5
1.3
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)
THIRD QUARTER
2018
2017*
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$ 20,348
100.0
$ 19,650
100.0
3.6
Cost of products sold
6,589
32.4
6,925
35.2
(4.9)
Gross Profit
13,759
67.6
12,725
64.8
8.1
Selling, marketing and administrative expenses
5,543
27.3
5,423
27.6
2.2
Research and development expense
2,508
12.3
2,585
13.2
(3.0)
In-process research and development
1,126
5.6
-
-
Interest (income) expense, net
68
0.3
155
0.8
Other (income) expense, net
3
0.0
(297)
(1.5)
Restructuring
88
0.4
69
0.3
Earnings before provision for taxes on income
4,423
21.7
4,790
24.4
(7.7)
Provision for taxes on income
489
2.4
1,026
5.2
(52.3)
Net earnings
$ 3,934
19.3
$ 3,764
19.2
4.5
Net earnings per share (Diluted)
$ 1.44
$ 1.37
5.1
Average shares outstanding (Diluted)
2,727.6
2,737.7
Effective tax rate
11.1
%
21.4
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$ 6,780
33.3
$ 6,573
33.5
3.1
Net earnings
$ 5,590
27.5
$ 5,208
26.5
7.3
Net earnings per share (Diluted)
$ 2.05
$ 1.90
7.9
Effective tax rate
17.6
%
20.8
%
(1)See Reconciliation of Non-GAAP Financial Measures.
*2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)
NINE MONTHS
2018
2017*
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$ 61,187
100.0
$ 56,255
100.0
8.8
Cost of products sold
20,130
32.9
18,180
32.3
10.7
Gross Profit
41,057
67.1
38,075
67.7
7.8
Selling, marketing and administrative expenses
16,549
27.1
15,475
27.5
6.9
Research and development expense
7,551
12.3
6,951
12.4
8.6
In-process research and development
1,126
1.8
-
-
Interest (income) expense, net
340
0.6
360
0.6
Other (income) expense, net
427
0.7
11
0.0
Restructuring
187
0.3
165
0.3
Earnings before provision for taxes on income
14,877
24.3
15,113
26.9
(1.6)
Provision for taxes on income
2,622
4.3
3,100
5.5
(15.4)
Net earnings
$ 12,255
20.0
$ 12,013
21.4
2.0
Net earnings per share (Diluted)
$ 4.49
$ 4.37
2.7
Average shares outstanding (Diluted)
2,729.6
2,746.4
Effective tax rate
17.6
%
20.5
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$ 20,652
33.8
$ 18,961
33.7
8.9
Net earnings
$ 16,943
27.7
$ 15,263
27.1
11.0
Net earnings per share (Diluted)
$ 6.21
$ 5.56
11.7
Effective tax rate
18.0
%
19.5
%
(1)See Reconciliation of Non-GAAP Financial Measures.
*2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Third Quarter
% Incr. /
Nine Months YTD
% Incr. /
(Dollars in Millions Except Per Share Data)
2018
2017
(Decr.)
2018
2017
(Decr.)
Earnings before provision for taxes on income - as reported
$ 4,423
4,790
(7.7)
%
$ 14,877
15,113
(1.6)
%
Intangible asset amortization expense
1,085
1,077
3,284
1,886
In-process research and development
1,126
-
1,126
-
Litigation expense, net
-
118
703
611
Restructuring/Other (1)
190
187
473
476
Actelion acquisition related cost
40
367
200
580
Contingent liability reversal
(184)
-
(184)
-
AMO acquisition related cost
36
36
82
115
Diabetes asset impairment
-
(2)
4
180
Unrealized loss/(gain) on securities
9
-
(3)
-
Other
55
-
90
-
Earnings before provision for taxes on income - as adjusted
$ 6,780
6,573
3.1
%
$ 20,652
18,961
8.9
%
Net Earnings - as reported
$ 3,934
3,764
4.5
%
$ 12,255
12,013
2.0
%
Intangible asset amortization expense
968
933
2,931
1,555
In-process research and development
859
-
859
-
Litigation expense, net
-
97
609
449
Restructuring/Other
162
136
395
358
Actelion acquisition related cost
37
255
193
454
Contingent liability reversal
(184)
-
(184)
-
AMO acquisition related cost
29
28
68
314
Diabetes asset impairment
-
(5)
3
120
Unrealized loss/(gain) on securities
8
-
(2)
-
Impact of tax legislation (2)
(265)
-
(253)
-
Other
42
-
69
-
Net Earnings - as adjusted
$ 5,590
5,208
7.3
%
$ 16,943
15,263
11.0
%
Diluted Net Earnings per share - as reported
$ 1.44
1.37
5.1
%
$ 4.49
4.37
2.7
%
Intangible asset amortization expense
0.35
0.34
1.07
0.57
In-process research and development
0.32
-
0.32
-
Litigation expense, net
-
0.04
0.22
0.16
Restructuring/Other
0.06
0.05
0.15
0.14
Actelion acquisition related cost
0.02
0.09
0.07
0.16
Contingent liability reversal
(0.07)
-
(0.07)
-
AMO acquisition related cost
0.01
0.01
0.02
0.11
Diabetes asset impairment
-
-
-
0.05
Unrealized loss/(gain) on securities
-
-
-
-
Impact of tax legislation
(0.10)
-
(0.09)
-
Other
0.02
-
0.03
-
Diluted Net Earnings per share - as adjusted
$ 2.05
1.90
7.9
%
$ 6.21
5.56
11.7
%
Operational Diluted Net Earnings per share - as adjusted
at 2016 foreign currency exchange rates
1.85
5.57
Impact of currency at 2017 foreign currency exchange rates
0.03
0.05
(0.17)
(0.01)
Operational Diluted Net Earnings per share - as adjusted
at 2017 foreign currency exchange rates
$ 2.08
1.90
9.5
%
$ 6.04
5.56
8.6
%
(1)Includes $23M recorded in cost of products sold and $79M recorded in other (income) expense for the third quarter 2018. Includes $73M recorded in cost of products sold
and $213M recorded in other (income) expense for nine months 2018 YTD. Includes $29M recorded in cost of products sold and $89M recorded in other (income) expense for the
third quarter 2017. Includes $46M recorded in cost of products sold and $265M recorded in other (income) expense for nine months 2017 YTD.
(2)Includes foreign currency translation
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Operational Sales Growth Excluding Acquisitions and Divestitures
THIRD QUARTER 2018 ACTUAL vs. 2017 ACTUAL
Segments
Consumer
Pharmaceutical
Medical Devices
Total
Operational % (1)
WW As Reported:
4.9%
8.2%
1.7%
5.5%
U.S.
6.6%
4.8%
0.3%
3.6%
International
3.7%
13.2%
3.0%
7.5%
Spine & Other
Codman Neuroscience
1.0
0.4
U.S.
0.6
0.2
International
1.4
0.5
Wound Care / Other
Compeed
0.8
0.1
U.S.
0.0
0.0
International
1.3
0.3
Beauty
Nizoral
0.5
0.1
U.S.
0.3
0.0
International
0.7
0.1
All Other Acquisitions and Divestitures
(0.1)
0.0
0.2
0.0
U.S.
(0.5)
0.0
0.3
0.1
International
0.2
0.0
0.0
0.1
WW Ops excluding Acquisitions and Divestitures
6.1%
8.2%
2.9%
6.1%
U.S.
6.4%
4.8%
1.2%
3.9%
International
5.9%
13.2%
4.4%
8.5%
(1)Operational growth excludes the effect of translational currency
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Operational Sales Growth Excluding Acquisitions and Divestitures
NINE MONTHS 2018 ACTUAL vs. 2017 ACTUAL
Segments
Consumer
Pharmaceutical
Medical Devices
Total
Operational % (1)
WW As Reported:
1.9%
13.4%
2.2%
7.5%
U.S.
2.3%
10.5%
1.2%
6.3%
International
1.6%
17.5%
3.2%
8.6%
Pulmonary Hypertension
Actelion
(4.3)
(2.0)
U.S.
(4.7)
(2.5)
International
(3.8)
(1.6)
Cardiovascular / Metabolism / Other
Actelion
(0.2)
(0.1)
U.S.
(0.1)
(0.1)
International
(0.3)
(0.1)
Spine & Other
Codman Neuroscience
1.0
0.4
U.S.
0.6
0.3
International
1.4
0.6
Wound Care / Other
Compeed
0.9
0.2
U.S.
0.0
0.0
International
1.5
0.3
Vision
Vision Surgical & Eye Health Business
(1.0)
(0.4)
U.S.
(0.9)
(0.3)
International
(1.1)
(0.4)
Beauty
Nizoral
0.2
0.0
U.S.
0.1
0.0
International
0.3
0.1
All Other Acquisitions and Divestitures
0.0
0.0
0.1
0.0
U.S.
(0.1)
0.0
0.0
0.0
International
0.2
0.0
0.2
0.1
WW Ops excluding Acquisitions and Divestitures
3.0%
8.9%
2.3%
5.6%
U.S.
2.3%
5.7%
0.9%
3.7%
International
3.6%
13.4%
3.7%
7.6%
(1)Operational growth excludes the effect of translational currency
REPORTED SALES vs. PRIOR PERIOD ($MM)
THIRD QUARTER
NINE MONTHS
% Change
% Change
2018
2017
Reported
Operational (1)
Currency
2018
2017
Reported
Operational (1)
Currency
CONSUMER SEGMENT (2)
BABY CARE
US
$ 120
$ 100
20.0%
20.0%
-
$ 306
$ 326
-6.1%
-6.1%
-
Intl
352
377
-6.6%
0.1%
-6.7%
1,079
1,100
-1.9%
-0.5%
-1.4%
WW
472
477
-1.0%
4.3%
-5.3%
1,385
1,426
-2.9%
-1.8%
-1.1%
BEAUTY
US
543
523
3.8%
3.8%
-
1,791
1,739
3.0%
3.0%
-
Intl
535
510
4.9%
9.2%
-4.3%
1,480
1,351
9.5%
7.7%
1.8%
WW
1,078
1,033
4.4%
6.5%
-2.1%
3,271
3,090
5.9%
5.1%
0.8%
ORAL CARE
US
158
154
2.6%
2.6%
-
472
460
2.6%
2.6%
-
Intl
226
228
-0.9%
3.6%
-4.5%
684
678
0.9%
-0.5%
1.4%
WW
384
382
0.5%
3.2%
-2.7%
1,156
1,138
1.6%
0.7%
0.9%
OTC
US
440
401
9.7%
9.7%
-
1,359
1,310
3.7%
3.7%
-
Intl
608
601
1.2%
4.8%
-3.6%
1,827
1,711
6.8%
3.8%
3.0%
WW
1,048
1,002
4.6%
6.8%
-2.2%
3,186
3,021
5.5%
3.8%
1.7%
WOMEN'S HEALTH
US
3
3
0.0%
0.0%
-
10
9
11.1%
11.1%
-
Intl
266
267
-0.4%
8.0%
-8.4%
782
779
0.4%
2.0%
-1.6%
WW
269
270
-0.4%
7.9%
-8.3%
792
788
0.5%
2.1%
-1.6%
WOUND CARE / OTHER
US
106
104
1.9%
1.9%
-
344
342
0.6%
0.6%
-
Intl
58
88
-34.1%
-31.3%
-2.8%
183
257
-28.8%
-30.0%
1.2%
WW
164
192
-14.6%
-13.3%
-1.3%
527
599
-12.0%
-12.5%
0.5%
TOTAL CONSUMER
US
1,370
1,285
6.6%
6.6%
-
4,282
4,186
2.3%
2.3%
-
Intl
2,045
2,071
-1.3%
3.7%
-5.0%
6,035
5,876
2.7%
1.6%
1.1%
WW
$ 3,415
$ 3,356
1.8%
4.9%
-3.1%
$ 10,317
$ 10,062
2.5%
1.9%
0.6%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
THIRD QUARTER
NINE MONTHS
% Change
% Change
2018
2017
Reported
Operational (1)
Currency
2018
2017
Reported
Operational (1)
Currency
PHARMACEUTICAL SEGMENT (2)(5)
IMMUNOLOGY
US
$ 2,400
$ 2,420
-0.8%
-0.8%
-
$ 6,717
$ 6,644
1.1%
1.1%
-
Intl
998
849
17.6%
21.7%
-4.1%
3,061
2,514
21.8%
18.6%
3.2%
WW
3,398
3,269
3.9%
5.0%
-1.1%
9,778
9,158
6.8%
5.9%
0.9%
REMICADE
US
987
1,206
-18.2%
-18.2%
-
2,821
3,452
-18.3%
-18.3%
-
US Exports (3)
100
156
-35.9%
-35.9%
-
346
448
-22.8%
-22.8%
-
Intl
292
285
2.5%
8.2%
-5.7%
921
949
-3.0%
-3.9%
0.9%
WW
1,379
1,647
-16.3%
-15.3%
-1.0%
4,088
4,849
-15.7%
-15.9%
0.2%
SIMPONI / SIMPONI ARIA
US
281
242
16.1%
16.1%
-
779
701
11.1%
11.1%
-
Intl
255
234
9.0%
13.5%
-4.5%
823
642
28.2%
25.3%
2.9%
WW
536
476
12.6%
14.8%
-2.2%
1,602
1,343
19.3%
17.9%
1.4%
STELARA
US
889
800
11.1%
11.1%
-
2,460
2,027
21.4%
21.4%
-
Intl
421
324
29.9%
33.0%
-3.1%
1,252
903
38.6%
32.9%
5.7%
WW
1,310
1,124
16.5%
17.4%
-0.9%
3,712
2,930
26.7%
24.9%
1.8%
OTHER IMMUNOLOGY
US
143
16
*
*
-
311
16
*
*
-
Intl
30
6
*
*
*
65
20
*
*
*
WW
173
22
*
*
*
376
36
*
*
*
INFECTIOUS DISEASES
US
345
353
-2.3%
-2.3%
-
1,006
1,020
-1.4%
-1.4%
-
Intl
478
460
3.9%
7.4%
-3.5%
1,496
1,334
12.1%
8.1%
4.0%
WW
823
813
1.2%
3.2%
-2.0%
2,502
2,354
6.3%
4.0%
2.3%
EDURANT / rilpivirine
US
13
15
-13.3%
-13.3%
-
42
44
-4.5%
-4.5%
-
Intl
189
179
5.6%
6.8%
-1.2%
581
478
21.5%
14.2%
7.3%
WW
202
194
4.1%
5.2%
-1.1%
623
522
19.3%
12.6%
6.7%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US
297
287
3.5%
3.5%
-
847
824
2.8%
2.8%
-
Intl
193
180
7.2%
12.4%
-5.2%
613
527
16.3%
13.5%
2.8%
WW
490
467
4.9%
6.9%
-2.0%
1,460
1,351
8.1%
7.0%
1.1%
OTHER INFECTIOUS DISEASES
US
35
51
-31.4%
-31.4%
-
117
152
-23.0%
-23.0%
-
Intl
96
101
-5.0%
-0.3%
-4.7%
302
329
-8.2%
-9.3%
1.1%
WW
131
152
-13.8%
-10.7%
-3.1%
419
481
-12.9%
-13.7%
0.8%
REPORTED SALES vs. PRIOR PERIOD ($MM)
THIRD QUARTER
NINE MONTHS
% Change
% Change
2018
2017
Reported
Operational (1)
Currency
2018
2017
Reported
Operational (1)
Currency
NEUROSCIENCE
US
651
647
0.6%
0.6%
-
1,914
1,931
-0.9%
-0.9%
-
Intl
839
851
-1.4%
2.1%
-3.5%
2,663
2,531
5.2%
2.3%
2.9%
WW
1,490
1,498
-0.5%
1.5%
-2.0%
4,577
4,462
2.6%
0.9%
1.7%
CONCERTA / methlyphenidate
US
57
100
-43.0%
-43.0%
-
191
284
-32.7%
-32.7%
-
Intl
100
98
2.0%
7.3%
-5.3%
322
304
5.9%
4.4%
1.5%
WW
157
198
-20.7%
-18.1%
-2.6%
513
588
-12.8%
-13.6%
0.8%
INVEGA SUSTENNA / XEPLION / TRINZA / TREVICTA
US
468
395
18.5%
18.5%
-
1,306
1,154
13.2%
13.2%
-
Intl
281
248
13.3%
16.6%
-3.3%
859
722
19.0%
14.2%
4.8%
WW
749
643
16.5%
17.8%
-1.3%
2,165
1,876
15.4%
13.5%
1.9%
RISPERDAL CONSTA
US
76
87
-12.6%
-12.6%
-
238
273
-12.8%
-12.8%
-
Intl
99
107
-7.5%
-4.0%
-3.5%
321
335
-4.2%
-7.3%
3.1%
WW
175
194
-9.8%
-7.9%
-1.9%
559
608
-8.1%
-9.8%
1.7%
OTHER NEUROSCIENCE
US
50
65
-23.1%
-23.1%
-
179
220
-18.6%
-18.6%
-
Intl
359
398
-9.8%
-6.6%
-3.2%
1,161
1,170
-0.8%
-2.9%
2.1%
WW
409
463
-11.7%
-9.0%
-2.7%
1,340
1,390
-3.6%
-5.4%
1.8%
ONCOLOGY
US
1,250
846
47.8%
47.8%
-
3,268
2,207
48.1%
48.1%
-
Intl
1,338
1,052
27.2%
31.2%
-4.0%
4,087
3,012
35.7%
30.9%
4.8%
WW
2,588
1,898
36.4%
38.6%
-2.2%
7,355
5,219
40.9%
38.1%
2.8%
DARZALEX
US
318
230
38.3%
38.3%
-
880
643
36.9%
36.9%
-
Intl
180
87
*
*
*
561
228
*
*
*
WW
498
317
57.1%
60.0%
-2.9%
1,441
871
65.4%
63.6%
1.8%
IMBRUVICA
US
334
230
45.2%
45.2%
-
811
622
30.4%
30.4%
-
Intl
371
282
31.6%
36.6%
-5.0%
1,101
749
47.0%
42.2%
4.8%
WW
705
512
37.7%
40.4%
-2.7%
1,912
1,371
39.5%
36.9%
2.6%
VELCADE
US
-
-
-
-
-
-
-
-
-
-
Intl
271
273
-0.7%
1.8%
-2.5%
864
843
2.5%
-1.7%
4.2%
WW
271
273
-0.7%
1.8%
-2.5%
864
843
2.5%
-1.7%
4.2%
ZYTIGA
US
527
352
49.7%
49.7%
-
1,420
826
71.9%
71.9%
-
Intl
431
317
36.0%
38.8%
-2.8%
1,292
924
39.8%
34.2%
5.6%
WW
958
669
43.2%
44.5%
-1.3%
2,712
1,750
55.0%
52.0%
3.0%
OTHER ONCOLOGY
US
71
34
*
*
-
157
116
35.3%
35.3%
-
Intl
85
93
-8.6%
-4.7%
-3.9%
269
268
0.4%
-2.5%
2.9%
WW
156
127
22.8%
25.6%
-2.8%
426
384
10.9%
8.9%
2.0%
PULMONARY HYPERTENSION(4)
US
425
371
14.6%
14.6%
-
1,215
408
*
*
-
Intl
231
261
-11.5%
-8.9%
-2.6%
691
309
*
*
*
WW
656
632
3.8%
4.9%
-1.1%
1,906
717
*
*
*
OPSUMIT
US
182
150
21.3%
21.3%
-
511
174
*
*
-
Intl
128
109
17.4%
20.9%
-3.5%
381
130
*
*
*
WW
310
259
19.7%
21.2%
-1.5%
892
304
*
*
*
TRACLEER
US
69
83
-16.9%
-16.9%
-
208
85
*
*
-
Intl
70
127
-44.9%
-43.6%
-1.3%
214
151
41.7%
37.5%
4.2%
WW
139
210
-33.8%
-33.0%
-0.8%
422
236
78.8%
76.1%
2.7%
UPTRAVI
US
154
113
36.3%
36.3%
-
433
121
*
*
-
Intl
17
11
54.5%
57.3%
-2.8%
49
12
*
*
*
WW
171
124
37.9%
38.1%
-0.2%
482
133
*
*
*
OTHER
US
20
25
-20.0%
-20.0%
-
63
28
*
*
-
Intl
16
14
14.3%
21.2%
-6.9%
47
16
*
*
*
WW
36
39
-7.7%
-5.2%
-2.5%
110
44
*
*
*
CARDIOVASCULAR / METABOLISM / OTHER
US
1,026
1,179
-13.0%
-13.0%
-
3,230
3,488
-7.4%
-7.4%
-
Intl
365
406
-10.1%
-6.5%
-3.6%
1,196
1,177
1.6%
-1.1%
2.7%
WW
1,391
1,585
-12.2%
-11.3%
-0.9%
4,426
4,665
-5.1%
-5.8%
0.7%
XARELTO
US
612
635
-3.6%
-3.6%
-
1,869
1,790
4.4%
4.4%
-
Intl
-
-
-
-
-
-
-
-
-
-
WW
612
635
-3.6%
-3.6%
-
1,869
1,790
4.4%
4.4%
-
INVOKANA / INVOKAMET
US
150
220
-31.8%
-31.8%
-
523
723
-27.7%
-27.7%
-
Intl
40
45
-11.1%
-6.7%
-4.4%
130
121
7.4%
4.8%
2.6%
WW
190
265
-28.3%
-27.6%
-0.7%
653
844
-22.6%
-23.0%
0.4%
PROCRIT / EPREX
US
178
168
6.0%
6.0%
-
523
511
2.3%
2.3%
-
Intl
77
70
10.0%
12.8%
-2.8%
244
229
6.6%
2.9%
3.7%
WW
255
238
7.1%
7.9%
-0.8%
767
740
3.6%
2.4%
1.2%
OTHER
US
86
156
-44.9%
-44.9%
-
315
464
-32.1%
-32.1%
-
Intl
248
291
-14.8%
-11.1%
-3.7%
822
827
-0.6%
-3.1%
2.5%
WW
334
447
-25.3%
-22.9%
-2.4%
1,137
1,291
-11.9%
-13.5%
1.6%
TOTAL PHARMACEUTICAL
US
6,097
5,816
4.8%
4.8%
-
17,350
15,698
10.5%
10.5%
-
Intl
4,249
3,879
9.5%
13.2%
-3.7%
13,194
10,877
21.3%
17.5%
3.8%
WW
$ 10,346
$ 9,695
6.7%
8.2%
-1.5%
$ 30,544
$ 26,575
14.9%
13.4%
1.5%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
THIRD QUARTER
NINE MONTHS
% Change
% Change
2018
2017
Reported
Operational (1)
Currency
2018
2017
Reported
Operational (1)
Currency
MEDICAL DEVICES SEGMENT (2)(5)
DIABETES CARE
US
$ 125
$ 168
-25.6%
-25.6%
-
$ 371
$ 482
-23.0%
-23.0%
-
Intl
190
237
-19.8%
-16.0%
-3.8%
638
743
-14.1%
-16.3%
2.2%
WW
315
405
-22.2%
-20.0%
-2.2%
1,009
1,225
-17.6%
-19.0%
1.4%
DIAGNOSTICS
US
-
-
-
-
-
-
-
-
-
-
Intl
-
-
-
-
-
-
1
*
*
*
WW
-
-
-
-
-
-
1
*
*
*
INTERVENTIONAL SOLUTIONS
US
320
279
14.7%
14.7%
0.0%
947
843
12.3%
12.3%
-
Intl
333
274
21.5%
24.1%
-2.6%
1,013
832
21.8%
17.5%
4.3%
WW
653
553
18.1%
19.4%
-1.3%
1,960
1,675
17.0%
14.9%
2.1%
ORTHOPAEDICS
US
1,284
1,308
-1.8%
-1.8%
-
3,923
4,034
-2.8%
-2.8%
-
Intl
827
896
-7.7%
-4.4%
-3.3%
2,700
2,738
-1.4%
-4.6%
3.2%
WW
2,111
2,204
-4.2%
-2.9%
-1.3%
6,623
6,772
-2.2%
-3.5%
1.3%
HIPS
US
201
195
3.1%
3.1%
-
621
612
1.5%
1.5%
-
Intl
129
133
-3.0%
1.0%
-4.0%
432
418
3.3%
0.1%
3.2%
WW
330
328
0.6%
2.2%
-1.6%
1,053
1,030
2.2%
0.9%
1.3%
KNEES
US
215
220
-2.3%
-2.3%
-
672
702
-4.3%
-4.3%
-
Intl
126
123
2.4%
6.8%
-4.4%
438
424
3.3%
0.2%
3.1%
WW
341
343
-0.6%
1.0%
-1.6%
1,110
1,126
-1.4%
-2.6%
1.2%
TRAUMA
US
395
398
-0.8%
-0.8%
-
1,196
1,179
1.4%
1.4%
-
Intl
259
264
-1.9%
1.0%
-2.9%
829
768
7.9%
4.4%
3.5%
WW
654
662
-1.2%
0.0%
-1.2%
2,025
1,947
4.0%
2.6%
1.4%
SPINE & OTHER
US
473
495
-4.4%
-4.4%
-
1,434
1,541
-6.9%
-6.9%
-
Intl
313
376
-16.8%
-13.9%
-2.9%
1,001
1,128
-11.3%
-14.3%
3.0%
WW
786
871
-9.8%
-8.6%
-1.2%
2,435
2,669
-8.8%
-10.1%
1.3%
SURGERY
US
1,016
1,002
1.4%
1.4%
-
3,031
3,009
0.7%
0.7%
-
Intl
1,360
1,344
1.2%
5.6%
-4.4%
4,283
3,992
7.3%
5.0%
2.3%
WW
2,376
2,346
1.3%
3.8%
-2.5%
7,314
7,001
4.5%
3.2%
1.3%
ADVANCED
US
421
398
5.8%
5.8%
-
1,216
1,190
2.2%
2.2%
-
Intl
555
525
5.7%
10.0%
-4.3%
1,731
1,543
12.2%
9.5%
2.7%
WW
976
923
5.7%
8.1%
-2.4%
2,947
2,733
7.8%
6.3%
1.5%
GENERAL
US
423
430
-1.6%
-1.6%
-
1,282
1,276
0.5%
0.5%
-
Intl
657
675
-2.7%
1.6%
-4.3%
2,094
2,017
3.8%
1.5%
2.3%
WW
1,080
1,105
-2.3%
0.3%
-2.6%
3,376
3,293
2.5%
1.1%
1.4%
SPECIALTY
US
172
174
-1.1%
-1.1%
-
533
543
-1.8%
-1.8%
-
Intl
148
144
2.8%
7.9%
-5.1%
458
432
6.0%
4.9%
1.1%
WW
320
318
0.6%
2.9%
-2.3%
991
975
1.6%
1.1%
0.5%
VISION
US
452
432
4.6%
4.6%
-
1,351
1,142
18.3%
18.3%
-
Intl
680
659
3.2%
6.2%
-3.0%
2,069
1,802
14.8%
12.6%
2.2%
WW
1,132
1,091
3.8%
5.6%
-1.8%
3,420
2,944
16.2%
14.9%
1.3%
CONTACT LENSES / OTHER
US
319
302
5.6%
5.6%
-
948
832
13.9%
13.9%
-
Intl
516
498
3.6%
6.4%
-2.8%
1,538
1,404
9.5%
7.4%
2.1%
WW
835
800
4.4%
6.2%
-1.8%
2,486
2,236
11.2%
9.9%
1.3%
SURGICAL
US
133
130
2.3%
2.3%
-
403
310
30.0%
30.0%
-
Intl
164
161
1.9%
5.5%
-3.6%
531
398
33.4%
31.0%
2.4%
WW
297
291
2.1%
4.1%
-2.0%
934
708
31.9%
30.5%
1.4%
TOTAL MEDICAL DEVICES
US
3,197
3,189
0.3%
0.3%
-
9,623
9,510
1.2%
1.2%
-
Intl
3,390
3,410
-0.6%
3.0%
-3.6%
10,703
10,108
5.9%
3.2%
2.7%
WW
$ 6,587
6,599
-0.2%
1.7%
-1.9%
$ 20,326
$ 19,618
3.6%
2.2%
1.4%
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Reported as U.S. sales
(4) Products acquired from Actelion acquisition on June 16, 2017
(5) Prior year amounts have been reclassified to conform to current year product disclosure
View original content to download multimedia:http://www.prnewswire.com/news-releases/johnson--johnson-reports-2018-third-quarter-results-300731779.html
SOURCE Johnson & Johnson
Company Codes: NYSE:JNJ
