The Johnson & Johnson Company is a health care giant based in the United States. The company sells medical devices, consumer packaged goods, and pharmaceuticals. It values its employees and customers across the globe. Johnson & Johnson embraces research and science. This is because it understands that it needs innovative ideas to improve the health care services accorded to people across the globe.
The earnings of the Johnson & Johnson Company have doubled in the second quarter of this year. Reporting from the New York Times on July 16, 2013, Thomas (2013) explained that the strong sales of prescription drugs are instrumental to this achievement (Thomas par. 3). The sales of the company’s stake in the Irish drug manufacturer also contribute a lot to the increased financial earnings. The total sales for the Johnson & Johnson in the second quarter of this year amounted to $17.9 billion.
This is an increase of 8.5% from the company’s earnings over the same period last year. According to Derrick Sung (an analyst for Bernstein Research), the breadth or expansion of company’s business is instrumental to this success. For instance, the global sales of the pharmaceutical products of the Johnson & Johnson Company have increased by 12% compared with earnings of the same quarter in 2012 (Thomas par. 2). The diversified model that the company integrates in its operations attributes to the increased earnings.
The information about the earnings of the Johnson &Johnson Company announced in the third quarter of 2013, shows an increase of 3.1% compared to the same period in 2012. The negative impact of currency experienced by the company this year was 1.6%.
The sales of the company’s products in the US and foreign countries increased by 1.7% and 4.2% respectively, compared to the 2012 results. The Johnson & Johnson Company’s net earnings per share in the third quarter of the current year is $3.0 billion. The diluted earnings in the same period were $1.04 (Johnson & Johnson par. 2).
According to Alex Gorsky (the chairman and chief executive officer of the company), the increase of the Johnson & Johnson’s earnings in the third quarter reflect the effectiveness of the company’s strategies targeted at profit maximization, business expansion, and cost minimization among other things. The company’s management formulated strategies that aimed at meeting both the short term objectives and long term goals.
The company focused on its key products and introduced new products successfully and hence the increase in financial growth. For instance, the earnings from the sales of MOTRIN, TYLENOL, and AVEENO among others positively contributed to the increase in the company’s earnings.
Most importantly, Johnson & Johnson successfully launched new products such as ZYTIGA, XARELTO, and INVOKANA in its markets across the globe (Johnson & Johnson par. 6). The strong sales of these products attribute to the increase in profits during the third quarter of 2013, compared to the previous year.
The company has invested internationally and managed to raise its earnings from the international markets by 4.2% compared to the last year’s earnings in the same period (Johnson & Johnson par. 3).
The Johnson & Johnson Company has not only managed to increase its financial growth from the previous years, but also has come up with meaningful innovations in the health care industry. It announced on Oct. 17, 2013 about the quarterly dividend for the fourth quarter of this year. It announced recently that the dividend is payable after the first ten days of the last month of this year. The top management scheduled the ex-dividend on Nov. 22, the same year.
Works Cited
Johnson & Johnson. “Johnson & Johnson announces quarterly dividend for fourth quarter 2013”. Acquire Media, 2013. Web.
Thomas, Katie. “Johnson & Johnson profit rises on strong prescription sales”. New York Times, 2013. Web.