Financial Report: J&J

J&J

4Q Revenues: $15.6 billion (-6%)

4Q Earnings: $1.9 billion (-12%)

FY Revenues: $61.6 billion (-1%)

FY Earnings: $13.3 billion (+9%)

Comments: Worldwide Pharmaceutical sales were $22.4 billion for the year (-1%). Domestic sales were down 4% and international sales increased 4%. Worldwide Consumer sales were $14.6 billion for the year (-8%). Domestic sales of that unit decreased 19% for the year and 29% for 4Q10, while international sales increased 1% for the year but dropped 6% for the quarter. Consumer sales were impacted by numerous recalls of OTC medicines and the suspension of manufacturing at the McNeil Consumer Healthcare facility in Fort Washington, PA. Overall, consumer sales fell $1.2 billion for the year. Worldwide Medical Devices and Diagnostics sales were $24.6 billion for the year (+4%). Results in the quarter included after-tax charges of $922 million for litigation settlements, product liability expense and costs associated with the DePuy ASR Hip recall. Earnings in 2009 included an after-tax restructuring charge of $852 million.