J&J Q1 earnings highlight rising dollar's tumultuous effect on global pharmas
- Johnson & Johnson's domestic sales rose by 5.9% in Q1 2015, but international sales declined by 12.4%, thanks largely to a negative currency effect of 13.2%.
- The company's overall sales were down by 4.3%, on a 4.1% decline in sales.
- Net earnings were $4.3 billion on $17.4 billion in overall quarterly sales.
While the strength of the dollar against other world currencies, including the euro, bodes well for US-based businesses, for companies such as Johnson & Johnson, which does business in more than 60 countries worldwide, it can be challenging. Johnson & Johnson focuses not only on pharmaceuticals and medical devices, but also consumer products.
J&J's CEO Alex Gorsky evinced a positive take on Q1 2015 earnings, saying that his company "delivered strong underlying growth in the first quarter, driven by new products and the strength of its core business," as reported in NJ Biz. Estimates for full-year adjusted earnings has been adjusted to $6.16 per share, from a previous range of $6.04 to $6.19 per share.