JNJ
$125.66
Johnson & Johnson
($.14)
(.11%)
Earnings Details
4th Quarter December 2016
Tuesday, January 24, 2017 6:40:00 AM
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Summary

Johnson & Johnson Misses

Johnson & Johnson (JNJ) reported 4th Quarter December 2016 earnings of $1.58 per share on revenue of $18.1 billion. The consensus earnings estimate was $1.56 per share on revenue of $18.1 billion. The Earnings Whisper number was $1.59 per share. Revenue grew 1.7% on a year-over-year basis.

The company said it expects 2017 earnings of $6.93 to $7.08 per share on revenue of $74.10 billion to $74.80 billion. The current consensus earnings estimate is $7.06 per share on revenue of $74.82 billion for the year ending December 31, 2017.

Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices, and Diagnostics business segments.

Results
Reported Earnings
$1.58
Earnings Whisper
$1.59
Consensus Estimate
$1.56
Reported Revenue
$18.11 Bil
Revenue Estimate
$18.14 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Johnson & Johnson Reports 2016 Fourth-Quarter Results:

Johnson & Johnson (JNJ) today announced sales of $18.1 billion for the fourth quarter of 2016, an increase of 1.7% as compared to the fourth quarter of 2015. Operational sales results increased 2.3% and the negative impact of currency was 0.6%. Domestic sales increased 2.6%. International sales increased 0.6%, reflecting operational growth of 1.9% and a negative currency impact of 1.3%. As a reminder, there were additional shipping days in the fourth quarter of 2015 that negatively impacted the current quarter by 480 basis points. Excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 7.6%, domestic sales increased 9.5% and international sales increased 5.6%.*

https://mma.prnewswire.com/media/403394/Johnson_and_Johnson_Logo.jpg

Worldwide sales for the full-year 2016 were $71.9 billion, an increase of 2.6% versus 2015. Operational results increased 3.9% and the negative impact of currency was 1.3%. Domestic sales increased 6.0%. International sales decreased 0.9%, reflecting operational growth of 1.8% and a negative currency impact of 2.7%. The additional shipping days in 2015 negatively impacted the current year by 130 basis points. Excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 7.4%, domestic sales increased 8.9% and international sales increased 5.7%.*

Net earnings and diluted earnings per share for the fourth quarter of 2016 were $3.8 billion and $1.38, respectively. Fourth-quarter 2016 net earnings included after-tax intangible amortization expense of approximately $0.3 billion and a net charge for after-tax special items of approximately $0.3 billion. Fourth-quarter 2015 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a net charge for after-tax special items of approximately $0.6 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.4 billion and adjusted diluted earnings per share were $1.58, representing increases of 7.9% and 9.7%, respectively, as compared to the same period in 2015.* On an operational basis, adjusted diluted earnings per share also increased 10.4%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

Net earnings and diluted earnings per share for the full-year 2016 were $16.5 billion and $5.93, respectively. Full-year net earnings included after-tax intangible amortization expense of approximately $0.9 billion and a charge for after-tax special items of approximately $1.3 billion. Full-year 2015 net earnings included after-tax intangible amortization expense of approximately $1.1 billion and a charge for after-tax special items of approximately $0.9 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the full-year of 2016 were $18.8 billion and adjusted diluted earnings per share were $6.73, representing increases of 7.6% and 8.5%, respectively, as compared to the same period in 2015.* On an operational basis, adjusted diluted earnings per share also increased 9.4%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

"We are pleased to report that we accelerated our adjusted growth for 2016 over the prior year, and delivered a strong total shareholder return of greater than 15 percent. The strong adjusted sales and EPS growth was driven by the impressive performance of our Pharmaceutical business and continued momentum in our Medical Device business and share gains while improving profitability in our Consumer business," said Alex Gorsky, Chairman and Chief Executive Officer. "Looking forward to 2017, we expect to continue driving sustainable, long-term growth through the new products, science and innovation that our talented colleagues and partners of Johnson & Johnson are advancing to positively impact human health."

The Company announced its 2017 full-year guidance for sales of $74.1 billion to $74.8 billion reflecting expected operational growth in the range of 4.0% to 5.0%. Excluding the impact of acquisitions and divestitures, operational sales growth is expected to be in the range of 3.0% to 3.5%.* Additionally, the Company announced adjusted earnings guidance for full-year 2017 of $6.93 to $7.08 per share reflecting expected operational growth in the range of 4.8% to 7.0%.* Adjusted earnings guidance excludes the impact of after-tax intangible amortization expense and special items.

Additionally, as part of the Company’s ongoing portfolio management, the Company is announcing it is engaging in a process to evaluate potential strategic options for the Johnson & Johnson Diabetes Care Companies, specifically LifeScan, Inc., Animas Corporation, and Calibra Medical, Inc. Strategic options may include the formation of operating partnerships, joint ventures or strategic alliances, a sale of the businesses, or other alternatives either separately or together. All options will be evaluated to determine the best opportunity to drive future growth and maximize shareholder value. There can be no assurance that this process will result in any transaction or other strategic alternative of any kind.

Worldwide Consumer sales of $13.3 billion for the full-year 2016 represented a decrease of 1.5% versus the prior year, consisting of an operational increase of 1.5% and a negative impact from currency of 3.0%. Domestic sales increased 3.8%; international sales decreased 4.8%, which reflected an operational increase of 0.1% and a negative currency impact of 4.9%. Excluding the net impact of acquisitions, divestitures, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 4.3%, domestic sales increased 5.6% and international sales increased 3.4%*.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over-the-counter products, including TYLENOL? analgesics, digestive health products and anti-smoking aids; NEUTROGENA? and AVEENO? beauty products and LISTERINE? oral care products.

Worldwide Pharmaceutical sales of $33.5 billion for the full-year 2016 represented an increase of 6.5% versus the prior year with an operational increase of 7.4% and a negative impact from currency of 0.9%. Domestic sales increased 9.8%; international sales increased 1.8%, which reflected an operational increase of 4.0% and a negative currency impact of 2.2%. Excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela, and the additional shipping days in 2015, on an operational basis, worldwide sales increased 11.5%, domestic sales increased 13.8% and international sales increased 8.3%.*

Worldwide operational results, excluding the net impact of acquisitions, divestitures and hepatitis C sales, were driven by new products and the strength of core products. Strong growth in new products include IMBRUVICA? (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer; DARZALEX? (daratumumab), for the treatment of patients with multiple myeloma; XARELTO? (rivaroxaban), an oral anticoagulant and INVOKANA?/INVOKAMET? (canagliflozin), for the treatment of adults with type 2 diabetes.

Additional contributors to operational sales growth included STELARA? (ustekinumab), REMICADE? (infliximab) and SIMPONI?/SIMPONI ARIA? (golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases; INVEGA? SUSTENNA?/XEPLION?/TRINZA? (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults and EDURANT? (rilpivirine) for the treatment of HIV.

Sales results were negatively impacted by generic entrants for ORTHO TRI-CYCLEN? LO (norgestimate/ethinyl estradiol) oral contraceptive and INVEGA? (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults.

During the quarter, the U.S. Food and Drug Administration (FDA) approved DARZALEX? (daratumumab) in combination with lenalidomide and dexamethasone, or bortezomib and dexamethasone, for the treatment of patients with multiple myeloma who have received at least one prior therapy. The European Commission approved STELARA? for the treatment of adults with moderately to severely active Crohn’s disease. Subsequent to the quarter, in January, the FDA approved IMBRUVICA? (ibrutinib) for the treatment of patients with marginal zone lymphoma who require systemic therapy and have received at least one prior anti-CD20- based therapy.

Additionally, regulatory applications for approval were submitted to the FDA and European Medicines Agency (EMA) for guselkumab for the treatment of adults living with moderate to severe plaque psoriasis. Regulatory applications for approval were also submitted to the FDA for SIMPONI ARIA? (golimumab) for the treatment of adults living with active psoriatic arthritis and the treatment of adults living with active ankylosing spondylitis and for STELARA? (ustekinumab) for the treatment of adolescents (12 to 17 years of age) with moderate to severe plaque psoriasis.

Worldwide Medical Devices sales of $25.1 billion for the full-year 2016 represented a decrease of 0.1% versus the prior year consisting of an operational increase of 0.9% and a negative currency impact of 1.0%. Domestic sales increased 1.1%; international sales decreased 1.2%, which reflected an operational increase of 0.7% and a negative currency impact of 1.9%. Excluding the net impact of acquisitions, divestitures, Venezuela and the additional shipping days in 2015, on an operational basis, worldwide sales increased 3.8%, domestic sales increased 2.9% and international sales increased 4.7%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology products in the Cardiovascular business; endocutters, energy and biosurgicals in the Advanced Surgery business; ACUVUE? contact lenses in the Vision Care business; and joint reconstruction and trauma products in the Orthopaedics business.

During the quarter, the FDA approved OneTouch Vibe(TM) Plus Insulin Pump and Continuous Glucose Monitoring System for the treatment of patients age two and older living with diabetes.

Also during the quarter, the purchase of expandable cage technologies for spinal fusion was completed, and a development agreement was entered into, with Interventional Spine, Inc.

About Johnson & Johnson

Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 126,400 employees at more than 230 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Operational sales growth excluding the net impact of acquisitions, divestitures, hepatitis C, Venezuela and the additional shipping days in 2015, 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 uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including business plans, transactions and restructuring plans; market conditions and the possibility that the on-going share repurchase program may be delayed, suspended or discontinued; the impact of business combinations and divestitures; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns or financial distress of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet obligations in compliance agreements with government bodies. A further list and description 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 January 3, 2016, including in Exhibit 99 thereto, and the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.investor.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) FOURTH QUARTER
TWELVE MONTHS
Percent Change
Percent Change
2016
2015
Total
Operations Currency
2016
2015
Total
Operations Currency
Sales to customers by
segment of business
Consumer
U.S.
$
1,387
1,231
12.7
%
12.7
-
$
5,420
5,222
3.8
%
3.8
-
International
2,045
2,089
(2.1)
0.2
(2.3)
7,887
8,285
(4.8)
0.1
(4.9)
3,432
3,320
3.4
4.9
(1.5)
13,307
13,507
(1.5)
1.5
(3.0)
Pharmaceutical
U.S.
5,002
4,910
1.9
1.9
-
20,125
18,333
9.8
9.8
-
International
3,230
3,154
2.4
3.7
(1.3)
13,339
13,097
1.8
4.0
(2.2)
8,232
8,064
2.1
2.6
(0.5)
33,464
31,430
6.5
7.4
(0.9)
Medical Devices
U.S.
3,148
3,152
(0.1)
(0.1)
-
12,266
12,132
1.1
1.1
-
International
3,294
3,275
0.6
1.3
(0.7)
12,853
13,005
(1.2)
0.7
(1.9)
6,442
6,427
0.2
0.6
(0.4)
25,119
25,137
(0.1)
0.9
(1.0)
U.S.
9,537
9,293
2.6
2.6
-
37,811
35,687
6.0
6.0
-
International
8,569
8,518
0.6
1.9
(1.3)
34,079
34,387
(0.9)
1.8
(2.7)
Worldwide
$ 18,106
17,811
1.7
%
2.3
(0.6)
$ 71,890
70,074
2.6
%
3.9
(1.3)
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)
FOURTH QUARTER
TWELVE MONTHS
Percent Change
Percent Change
2016
2015
Total
Operations Currency
2016
2015
Total
Operations Currency
Sales to customers by
geographic area
U.S.
$
9,537
9,293
2.6
%
2.6
-
$ 37,811
35,687
6.0
%
6.0
-
Europe
4,001
4,002
0.0
3.9
(3.9)
15,770
15,995
(1.4)
1.4
(2.8)
Western Hemisphere excluding U.S. 1,465
1,442
1.6
2.4
(0.8)
5,734
6,045
(5.1)
4.0
(9.1)
Asia-Pacific, Africa
3,103
3,074
0.9
(0.9)
1.8
12,575
12,347
1.8
1.4
0.4
International
8,569
8,518
0.6
1.9
(1.3)
34,079
34,387
(0.9)
1.8
(2.7)
Worldwide
$ 18,106
17,811
1.7
%
2.3
(0.6)
$ 71,890
70,074
2.6
%
3.9
(1.3)
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)
FOURTH QUARTER
2016
2015
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$ 18,106
100.0
$ 17,811
100.0
1.7
Cost of products sold
5,534
30.5
5,673
31.8
(2.5)
Selling, marketing and administrative expenses
5,309
29.3
5,891
33.1
(9.9)
Research and development expense
2,640
14.6
2,864
16.1
(7.8)
In-process research and development
-
-
214
1.2
Interest (income) expense, net
84
0.5
107
0.6
Other (income) expense, net
20
0.1
(1,205)
(6.8)
Restructuring
195
1.1
509
2.9
Earnings before provision for taxes on income
4,324
23.9
3,758
21.1
15.1
Provision for taxes on income
510
2.8
543
3.0
(6.1)
Net earnings
$
3,814
21.1
$
3,215
18.1
18.6
Net earnings per share (Diluted)
$
1.38
$
1.15
20.0
Average shares outstanding (Diluted)
2,764.5
2,803.3
Effective tax rate
11.8
%
14.4
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$
5,103
28.2
$
4,913
27.6
3.9
Net earnings
$
4,361
24.1
$
4,043
22.7
7.9
Net earnings per share (Diluted)
$
1.58
$
1.44
9.7
Effective tax rate
14.5
%
17.7
%
(1)See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)
TWELVE MONTHS
2016
2015
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$ 71,890
100.0
$ 70,074
100.0
2.6
Cost of products sold
21,685
30.2
21,536
30.7
0.7
Selling, marketing and administrative expenses
19,945
27.7
21,203
30.3
(5.9)
Research and development expense
9,095
12.7
9,046
12.9
0.5
In-process research and development
29
0.0
224
0.3
Interest (income) expense, net
358
0.5
424
0.6
Other (income) expense, net
484
0.7
(2,064)
(2.9)
Restructuring
491
0.7
509
0.7
Earnings before provision for taxes on income
19,803
27.5
19,196
27.4
3.2
Provision for taxes on income
3,263
4.5
3,787
5.4
(13.8)
Net earnings
$ 16,540
23.0
$ 15,409
22.0
7.3
Net earnings per share (Diluted)
$
5.93
$
5.48
8.2
Average shares outstanding (Diluted)
2,788.9
2,812.9
Effective tax rate
16.5
%
19.7
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$ 22,759
31.7
$ 22,003
31.4
3.4
Net earnings
$ 18,764
26.1
$ 17,445
24.9
7.6
Net earnings per share (Diluted)
$
6.73
$
6.20
8.5
Effective tax rate
17.6
%
20.7
%
(1)See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Fourth Quarter
% Incr. /
Twelve Months
% Incr. /
(Dollars in Millions Except Per Share Data)
2016
2015
(Decr.)
2016
2015
(Decr.)
Earnings before provision for taxes on income - as reported
$ 4,324
3,758
15.1
%
$ 19,803
19,196
3.2
%
Intangible asset amortization expense
344
301
1,271
1,570
Restructuring/Other(1)
298
590
685
590
Litigation expense, net
96
-
817
141
DePuy ASRTMHip program
9
-
9
148
In-process research and development
-
214
29
224
Other
32
50
145
134
Earnings before provision for taxes on income - as adjusted
$ 5,103
4,913
3.9
%
$ 22,759
22,003
3.4
%
Net Earnings - as reported
$ 3,814
3,215
18.6
%
$ 16,540
15,409
7.3
%
Intangible asset amortization expense
252
220
931
1,113
Restructuring/Other
251
415
544
415
Litigation expense, net
80
-
675
118
DePuy ASR(TM) Hip program
7
-
7
130
In-process research and development
-
156
23
162
Other
(43)
37
44
98
Net Earnings - as adjusted
$ 4,361
4,043
7.9
%
$ 18,764
17,445
7.6
%
Diluted Net Earnings per share - as reported
$
1.38
1.15
20.0
%
$
5.93
5.48
8.2
%
Intangible asset amortization expense
0.09
0.07
0.33
0.39
Restructuring/Other
0.09
0.15
0.20
0.15
Litigation expense, net
0.03
-
0.24
0.04
DePuy ASRTMHip program
-
-
-
0.05
In-process research and development
-
0.06
0.01
0.06
Other
(0.01)
0.01
0.02
0.03
Diluted Net Earnings per share - as adjusted
$
1.58
1.44
9.7
%
$
6.73
6.20
8.5
%
Operational Diluted Net Earnings per share - as adjusted at 2014 foreign currency exchange rates
1.54
6.76
Impact of currency at 2015 foreign currency exchange rates
0.01
(0.10)
0.05
(0.56)
Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates $
1.59
1.44
10.4
%
$
6.78
6.20
9.4
%
(1) Includes $18M recorded in cost of products sold and $85M recorded in other (income) expense for the fourth quarter 2016,
and $81M recorded in cost of products sold for the fourth quarter 2015.
Includes $45M recorded in cost of products sold and $149M recorded in other (income) expense for twelve months YTD 2016,
and $81M recorded in cost of products sold for twelve months YTD 2015.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Operational Sales Growth Excluding Acquisitions, Divestitures,
Hepatitis C Sales(1), Venezuela and Additional 2015 Shipping Days
FOURTH QUARTER 2016 ACTUAL vs. 2015 ACTUAL
Segments
Consumer
Pharmaceutical
Medical Devices
Total
Operational %(2)
WW As Reported:
4.9%
2.6%
0.6%
2.3%
U.S.
12.7%
1.9%
(0.1)%
2.6%
International
0.2%
3.7%
1.3%
1.9%
Wound Care/Other
SPLENDA?
0.5
0.1
U.S.
0.0
0.0
International
0.8
0.2
Cardiovascular
Cordis
0.0
0.0
U.S.
0.1
0.0
International
(0.1)
0.0
Beauty
Vogue
(2.7)
(0.5)
U.S.
(5.7)
(0.8)
International
(1.0)
(0.3)
Other Neuroscience
Controlled Substance Raw Material and API Business
1.2
0.5
U.S.
1.4
0.8
International
0.8
0.3
All Other Acquisitions and Divestitures
(0.1)
0.0
0.3
0.1
U.S.
(0.3)
(0.1)
(0.4)
(0.2)
International
0.1
0.0
1.0
0.4
WW Ops excluding Acquisitions and Divestitures
2.6%
3.8%
0.9%
2.5%
U.S.
6.7%
3.2%
(0.4)%
2.4%
International
0.1%
4.5%
2.2%
2.5%
Hepatitis C
0.4
0.2
U.S.
(0.1)
0.0
International
1.2
0.5
Venezuela
0.4
0.0
0.1
0.1
U.S.
0.0
0.0
0.0
0.0
International
0.7
0.2
0.2
0.3
Additional 2015 Shipping Days
4.6
5.7
3.7
4.8
U.S.
7.0
8.7
4.9
7.1
International
3.3
1.2
2.6
2.3
WW Ops excluding Acquisitions, Divestitures, Hepatitis C, Venezuela & Shipping Days
7.6%
9.9%
4.7%
7.6%
U.S.
13.7%
11.8%
4.5%
9.5%
International
4.1%
7.1%
5.0%
5.6%
(1)Hepatitis C products include OLYSIO?/SOVRIAD?and INCIVO?
(2)Operational growth excludes the effect of translational currency
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Operational Sales Growth Excluding Acquisitions, Divestitures,
Hepatitis C Sales(1), Venezuela and Additional 2015 Shipping Days
TWELVE MONTHS 2016 ACTUAL vs. 2015 ACTUAL
Segments
Consumer
Pharmaceutical
Medical Devices
Total
Operational %(2)
WW As Reported:
1.5%
7.4%
0.9%
3.9%
U.S.
3.8%
9.8%
1.1%
6.0%
International
0.1%
4.0%
0.7%
1.8%
Wound Care/Other
SPLENDA?
1.8
0.3
U.S.
3.4
0.5
International
0.8
0.2
Cardiovascular
Cordis
1.7
0.7
U.S.
0.8
0.3
International
2.6
1.0
Beauty
(1.2)
Vogue
(2.8)
(0.2)
U.S.
(0.3)
(0.4)
International
0.0
Other Neuroscience
Controlled Substance Raw Material and API Business
0.5
0.2
U.S.
0.7
0.3
International
0.2
0.1
All Other Acquisitions and Divestitures
(0.1)
0.1
0.1
0.1
U.S.
(0.3)
0.2
(0.2)
0.0
International
0.1
0.1
0.3
0.1
WW Ops excluding Acquisitions and Divestitures
2.0%
8.0%
2.7%
5.0%
U.S.
4.1%
10.7%
1.7%
6.7%
International
0.7%
4.3%
3.6%
3.2%
Hepatitis C
1.9
0.8
U.S.
0.7
0.4
International
3.4
1.2
Venezuela
1.2
0.1
0.2
0.3
U.S.
0.0
0.0
0.0
0.0
International
1.9
0.3
0.4
0.7
Additional 2015 Shipping Days
1.1
1.5
0.9
1.3
U.S.
1.5
2.4
1.2
1.8
International
0.8
0.3
0.7
0.6
WW Ops excluding Acquisitions, Divestitures, Hepatitis C, Venezuela & Shipping Days
4.3%
11.5%
3.8%
7.4%
U.S.
5.6%
13.8%
2.9%
8.9%
International
3.4%
8.3%
4.7%
5.7%
(1)Hepatitis C products include OLYSIO?/SOVRIAD?and INCIVO?
(2)Operational growth excludes the effect of translational currency
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2016
2015
Reported Operational (1) Currency
2016
2015
Reported Operational (1) Currency
CONSUMER SEGMENT (2) (3)
BABY CARE
US
$
123
126
-2.4%
-2.4%
-
$
488
514
-5.1%
-5.1%
-
Intl
370
387
-4.4%
-2.2%
-2.2%
1,513
1,643
-7.9%
-2.0%
-5.9%
WW
493
513
-3.9%
-2.3%
-1.6%
2,001
2,157
-7.2%
-2.7%
-4.5%
BEAUTY
US
580
442
31.2%
31.2%
-
2,135
1,861
14.7%
14.7%
-
Intl
483
461
4.8%
6.7%
-1.9%
1,762
1,772
-0.6%
3.7%
-4.3%
WW
1,063
903
17.7%
18.7%
-1.0%
3,897
3,633
7.3%
9.4%
-2.1%
ORAL CARE
US
163
170
-4.1%
-4.1%
-
648
629
3.0%
3.0%
-
Intl
234
238
-1.7%
0.2%
-1.9%
920
951
-3.3%
1.4%
-4.7%
WW
397
408
-2.7%
-1.6%
-1.1%
1,568
1,580
-0.8%
2.0%
-2.8%
OTC
US
418
386
8.3%
8.3%
-
1,675
1,565
7.0%
7.0%
-
Intl
621
632
-1.7%
1.5%
-3.2%
2,302
2,330
-1.2%
3.4%
-4.6%
WW
1,039
1,018 2.1%
4.1%
-2.0%
3,977
3,895
2.1%
4.8%
-2.7%
WOMEN’S HEALTH
US
3
7
-57.1%
-57.1%
-
19
26
-26.9%
-26.9%
-
Intl
261
276
-5.4%
-3.1%
-2.3%
1,048
1,174
-10.7%
-4.6%
-6.1%
WW
264
283
-6.7%
-4.4%
-2.3%
1,067
1,200
-11.1%
-5.1%
-6.0%
WOUND CARE / OTHER
US
100
100
0.0%
0.0%
-
455
627
-27.4%
-27.4%
-
Intl
76
95
-20.0%
-19.6%
-0.4%
342
415
-17.6%
-14.7%
-2.9%
WW
176
195
-9.7%
-9.5%
-0.2%
797
1,042
-23.5%
-22.3%
-1.2%
TOTAL CONSUMER
US
1,387
1,231 12.7%
12.7%
-
5,420
5,222
3.8%
3.8%
-
Intl
2,045
2,089 -2.1%
0.2%
-2.3%
7,887
8,285
-4.8%
0.1%
-4.9%
WW
$
3,432
3,320 3.4%
4.9%
-1.5%
$
13,307
13,507 -1.5%
1.5%
-3.0%
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2016
2015
Reported Operational (1) Currency
2016
2015
Reported Operational (1) Currency
PHARMACEUTICAL SEGMENT (2) (3)
IMMUNOLOGY
US
$
2,157
2,101 2.7%
2.7%
-
$
8,846
7,642
15.8%
15.8%
-
Intl
779
670
16.3%
16.9%
-0.6%
3,122
2,760
13.1%
15.9%
-2.8%
WW
2,936
2,771 6.0%
6.1%
-0.1%
11,968
10,402 15.1%
15.9%
-0.8%
REMICADE
US
1,173
1,193 -1.7%
-1.7%
-
4,842
4,453
8.7%
8.7%
-
US Exports (4)
109
180
-39.4%
-39.4%
-
782
782
0.0%
0.0%
-
Intl
342
307
11.4%
11.9%
-0.5%
1,342
1,326
1.2%
5.4%
-4.2%
WW
1,624
1,680 -3.3%
-3.2%
-0.1%
6,966
6,561
6.2%
7.0%
-0.8%
SIMPONI / SIMPONI ARIA
US
243
204
19.1%
19.1%
-
959
730
31.4%
31.4%
-
Intl
183
136
34.6%
32.7%
1.9%
786
598
31.4%
31.6%
-0.2%
WW
426
340
25.3%
24.5%
0.8%
1,745
1,328
31.4%
31.5%
-0.1%
STELARA
US
632
524
20.6%
20.6%
-
2,263
1,677
34.9%
34.9%
-
Intl
247
218
13.3%
15.6%
-2.3%
969
797
21.6%
24.0%
-2.4%
WW
879
742
18.5%
19.2%
-0.7%
3,232
2,474
30.6%
31.4%
-0.8%
OTHER IMMUNOLOGY
US
-
-
-
-
-
-
-
-
-
-
Intl
7
9
-22.2%
-20.6%
-1.6%
25
39
-35.9%
-30.1%
-5.8%
WW
7
9
-22.2%
-20.6%
-1.6%
25
39
-35.9%
-30.1%
-5.8%
INFECTIOUS DISEASES
US
354
363
-2.5%
-2.5%
-
1,461
1,535
-4.8%
-4.8%
-
Intl
407
438
-7.1%
-5.0%
-2.1%
1,747
2,121
-17.6%
-15.7%
-1.9%
WW
761
801
-5.0%
-3.9%
-1.1%
3,208
3,656
-12.3%
-11.2%
-1.1%
EDURANT
US
14
12
16.7%
16.7%
-
52
41
26.8%
26.8%
-
Intl
151
95
58.9%
60.7%
-1.8%
521
369
41.2%
41.9%
-0.7%
WW
165
107
54.2%
55.8%
-1.6%
573
410
39.8%
40.4%
-0.6%
OLYSIO / SOVRIAD
US
5
(1)
**
**
-
55
173
-68.2%
-68.2%
-
Intl
5
45
-88.9%
-88.1%
-0.8%
51
448
-88.6%
-88.1%
-0.5%
WW
10
44
-77.3%
-76.5%
-0.8%
106
621
-82.9%
-82.6%
-0.3%
PREZISTA / PREZCOBIX / REZOLSTA
US
283
287
-1.4%
-1.4%
-
1,143
1,064
7.4%
7.4%
-
Intl
164
180
-8.9%
-6.0%
-2.9%
708
746
-5.1%
-2.3%
-2.8%
WW
447
467
-4.3%
-3.2%
-1.1%
1,851
1,810
2.3%
3.5%
-1.2%
OTHER INFECTIOUS DISEASES
US
52
65
-20.0%
-20.0%
-
211
257
-17.9%
-17.9%
-
Intl
87
118
-26.3%
-24.9%
-1.4%
467
558
-16.3%
-13.6%
-2.7%
WW
139
183
-24.0%
-23.1%
-0.9%
678
815
-16.8%
-15.0%
-1.8%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2016
2015
Reported Operational (1) Currency
2016
2015
Reported Operational (1) Currency
NEUROSCIENCE
US
631
752
-16.1%
-16.1%
-
2,628
2,850
-7.8%
-7.8%
-
Intl
839
849
-1.2%
-1.2%
0.0%
3,457
3,409
1.4%
2.3%
-0.9%
WW
1,470
1,601 -8.2%
-8.2%
0.0%
6,085
6,259
-2.8%
-2.3%
-0.5%
CONCERTA / METHYLPHENIDATE
US
103
117
-12.0%
-12.0%
-
468
434
7.8%
7.8%
-
Intl
101
96
5.2%
5.8%
-0.6%
395
387
2.1%
4.8%
-2.7%
WW
204
213
-4.2%
-3.9%
-0.3%
863
821
5.1%
6.4%
-1.3%
INVEGA / PALIPERIDONE
US
-
58
**
**
-
70
339
-79.4%
-79.4%
-
Intl
56
55
1.8%
0.2%
1.6%
241
234
3.0%
2.1%
0.9%
WW
56
113
-50.4%
-51.1%
0.7%
311
573
-45.7%
-46.1%
0.4%
INVEGA SUSTENNA / XEPLION / TRINZA
US
360
327
10.1%
10.1%
-
1,343
1,085
23.8%
23.8%
-
Intl
225
197
14.2%
15.8%
-1.6%
871
745
16.9%
18.7%
-1.8%
WW
585
524
11.6%
12.2%
-0.6%
2,214
1,830
21.0%
21.7%
-0.7%
RISPERDAL CONSTA
US
92
103
-10.7%
-10.7%
-
381
409
-6.8%
-6.8%
-
Intl
118
131
-9.9%
-8.6%
-1.3%
512
561
-8.7%
-7.4%
-1.3%
WW
210
234
-10.3%
-9.5%
-0.8%
893
970
-7.9%
-7.1%
-0.8%
OTHER NEUROSCIENCE
US
76
147
-48.3%
-48.3%
-
366
583
-37.2%
-37.2%
-
Intl
339
370
-8.4%
-9.8%
1.4%
1,438
1,482
-3.0%
-2.9%
-0.1%
WW
415
517
-19.7%
-20.7%
1.0%
1,804
2,065
-12.6%
-12.5%
-0.1%
ONCOLOGY
US
595
457
30.2%
30.2%
-
2,335
1,547
50.9%
50.9%
-
Intl
867
816
6.3%
8.1%
-1.8%
3,472
3,148
10.3%
12.6%
-2.3%
WW
1,462
1,273 14.8%
15.9%
-1.1%
5,807
4,695
23.7%
25.2%
-1.5%
DARZALEX
US
151
20
*
*
-
471
20
*
*
-
Intl
49
-
*
*
0.0%
101
-
*
*
0.0%
WW
200
20
*
*
0.0%
572
20
*
*
0.0%
IMBRUVICA
US
158
122
29.5%
29.5%
-
613
375
63.5%
63.5%
-
Intl
188
113
66.4%
72.2%
-5.8%
638
314
*
*
-6.3%
WW
346
235
47.2%
50.0%
-2.8%
1,251
689
81.6%
84.5%
-2.9%
VELCADE
US
-
-
-
-
-
-
-
-
-
-
Intl
274
321
-14.6%
-12.6%
-2.0%
1,224
1,333
-8.2%
-5.9%
-2.3%
WW
274
321
-14.6%
-12.6%
-2.0%
1,224
1,333
-8.2%
-5.9%
-2.3%
ZYTIGA
US
249
286
-12.9%
-12.9%
-
1,089
1,070
1.8%
1.8%
-
Intl
270
295
-8.5%
-9.0%
0.5%
1,171
1,161
0.9%
1.8%
-0.9%
WW
519
581
-10.7%
-11.0%
0.3%
2,260
2,231
1.3%
1.8%
-0.5%
OTHER ONCOLOGY
US
37
29
27.6%
27.6%
-
162
82
97.6%
97.6%
-
Intl
86
87
-1.1%
1.3%
-2.4%
338
340
-0.6%
2.1%
-2.7%
WW
123
116
6.0%
7.8%
-1.8%
500
422
18.5%
20.6%
-2.1%
CARDIOVASCULAR / METABOLISM / OTHER
US
1,265
1,237 2.3%
2.3%
-
4,855
4,759
2.0%
2.0%
-
Intl
338
381
-11.3%
-7.8%
-3.5%
1,541
1,659
-7.1%
-2.9%
-4.2%
WW
1,603
1,618 -0.9%
-0.1%
-0.8%
6,396
6,418
-0.3%
0.8%
-1.1%
XARELTO
US
598
494
21.1%
21.1%
-
2,288
1,868
22.5%
22.5%
-
Intl
-
-
-
-
-
-
-
-
-
-
WW
598
494
21.1%
21.1%
-
2,288
1,868
22.5%
22.5%
-
INVOKANA / INVOKAMET
US
334
348
-4.0%
-4.0%
-
1,273
1,238
2.8%
2.8%
-
Intl
37
24
54.2%
60.3%
-6.1%
134
70
91.4%
*
-9.7%
WW
371
372
-0.3%
0.1%
-0.4%
1,407
1,308
7.6%
8.1%
-0.5%
PROCRIT / EPREX
US
186
173
7.5%
7.5%
-
767
692
10.8%
10.8%
-
Intl
73
87
-16.1%
-14.5%
-1.6%
338
376
-10.1%
-7.6%
-2.5%
WW
259
260
-0.4%
0.1%
-0.5%
1,105
1,068
3.5%
4.4%
-0.9%
OTHER
US
147
222
-33.8%
-33.8%
-
527
961
-45.2%
-45.2%
-
Intl
228
270
-15.6%
-11.7%
-3.9%
1,069
1,213
-11.9%
-7.5%
-4.4%
WW
375
492
-23.8%
-21.6%
-2.2%
1,596
2,174
-26.6%
-24.1%
-2.5%
TOTAL PHARMACEUTICAL
US
5,002
4,910
1.9%
1.9%
-
20,125
18,333 9.8%
9.8%
-
Intl
3,230
3,154
2.4%
3.7%
-1.3%
13,339
13,097 1.8%
4.0%
-2.2%
WW
$
8,232
8,064
2.1%
2.6%
-0.5%
$
33,464
31,430 6.5%
7.4%
-0.9%
See footnotes at end of schedule
REPORTED SALES vs. PRIOR PERIOD ($MM)
FOURTH QUARTER
TWELVE MONTHS
% Change
% Change
2016
2015
Reported
Operational (1) Currency
2016
2015
Reported Operational (1) Currency
MEDICAL DEVICES SEGMENT (2)
CARDIOVASCULAR
US
$
247
229
7.9%
7.9%
-
$
948
931
1.8%
1.8%
-
Intl
238
210
13.3%
12.4%
0.9%
901
1,105
-18.5%
-18.4%
-0.1%
WW
485
439
10.5%
10.1%
0.4%
1,849
2,036
-9.2%
-9.2%
0.0%
DIABETES CARE
US
191
202
-5.4%
-5.4%
-
739
833
-11.3%
-11.3%
-
Intl
271
278
-2.5%
-1.1%
-1.4%
1,050
1,095
-4.1%
-1.9%
-2.2%
WW
462
480
-3.8%
-3.0%
-0.8%
1,789
1,928
-7.2%
-5.9%
-1.3%
DIAGNOSTICS
US
-
-
-
-
-
-
-
-
-
-
Intl
-
24
**
**
**
66
86
-23.3%
-13.9%
-9.4%
WW
-
24
**
**
**
66
86
-23.3%
-13.9%
-9.4%
ORTHOPAEDICS
US
1,422
1,438
-1.1%
-1.1%
-
5,521
5,380
2.6%
2.6%
-
Intl
965
985
-2.0%
-0.6%
-1.4%
3,813
3,882
-1.8%
0.5%
-2.3%
WW
2,387
2,423
-1.5%
-0.9%
-0.6%
9,334
9,262
0.8%
1.8%
-1.0%
HIPS
US
208
213
-2.3%
-2.3%
-
798
781
2.2%
2.2%
-
Intl
142
141
0.7%
3.2%
-2.5%
563
551
2.2%
5.7%
-3.5%
WW
350
354
-1.1%
-0.1%
-1.0%
1,361
1,332
2.2%
3.6%
-1.4%
KNEES
US
247
254
-2.8%
-2.8%
-
943
916
2.9%
2.9%
-
Intl
148
151
-2.0%
0.9%
-2.9%
581
580
0.2%
3.5%
-3.3%
WW
395
405
-2.5%
-1.4%
-1.1%
1,524
1,496
1.9%
3.2%
-1.3%
TRAUMA
US
394
379
4.0%
4.0%
-
1,545
1,462
5.7%
5.7%
-
Intl
260
265
-1.9%
-1.2%
-0.7%
1,024
1,066
-3.9%
-1.9%
-2.0%
WW
654
644
1.6%
1.9%
-0.3%
2,569
2,528
1.6%
2.5%
-0.9%
SPINE & OTHER
US
573
592
-3.2%
-3.2%
-
2,235
2,221
0.6%
0.6%
-
Intl
415
428
-3.0%
-2.1%
-0.9%
1,645
1,685
-2.4%
-0.6%
-1.8%
WW
988
1,020
-3.1%
-2.7%
-0.4%
3,880
3,906
-0.7%
0.1%
-0.8%
SURGERY
US
1,023
1,044
-2.0%
-2.0%
-
4,026
3,991
0.9%
0.9%
-
Intl
1,364
1,369
-0.4%
0.8%
-1.2%
5,270
5,226
0.8%
3.3%
-2.5%
WW
2,387
2,413
-1.1%
-0.4%
-0.7%
9,296
9,217
0.9%
2.3%
-1.4%
ADVANCED
US
393
384
2.3%
2.3%
-
1,524
1,430
6.6%
6.6%
-
Intl
515
486
6.0%
7.4%
-1.4%
1,993
1,845
8.0%
10.7%
-2.7%
WW
908
870
4.4%
5.2%
-0.8%
3,517
3,275
7.4%
8.9%
-1.5%
GENERAL
US
415
430
-3.5%
-3.5%
-
1,669
1,702
-1.9%
-1.9%
-
Intl
687
717
-4.2%
-2.9%
-1.3%
2,693
2,780
-3.1%
-0.7%
-2.4%
WW
1,102
1,147
-3.9%
-3.1%
-0.8%
4,362
4,482
-2.7%
-1.2%
-1.5%
SPECIALTY
US
215
230
-6.5%
-6.5%
-
833
859
-3.0%
-3.0%
-
Intl
162
166
-2.4%
-2.5%
0.1%
584
601
-2.8%
-0.4%
-2.4%
WW
377
396
-4.8%
-4.8%
0.0%
1,417
1,460
-2.9%
-1.9%
-1.0%
VISION CARE
US
265
239
10.9%
10.9%
-
1,032
997
3.5%
3.5%
-
Intl
456
409
11.5%
9.9%
1.6%
1,753
1,611
8.8%
8.2%
0.6%
WW
721
648
11.3%
10.3%
1.0%
2,785
2,608
6.8%
6.4%
0.4%
TOTAL MEDICAL DEVICES
US
3,148
3,152
-0.1%
-0.1%
-
12,266
12,132 1.1%
1.1%
-
Intl
3,294
3,275
0.6%
1.3%
-0.7%
12,853
13,005 -1.2%
0.7%
-1.9%
WW
$
6,442
6,427
0.2%
0.6%
-0.4%
$
25,119
25,137 -0.1%
0.9%
-1.0%
* Percentage greater than 100%
** Not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Prior year amounts have been reclassified to conform to current year product disclosure
(see supplemental sales information for further detail)
(4) Reported as U.S. sales

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/johnson--johnson-reports-2016-fourth-quarter-results-300395484.html

SOURCE Johnson & Johnson

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