Johnson & Johnson's Medical Devices Segment Drives Growth in Q2

Johnson & Johnson's expansion of medical devices production has paid off, contributing significantly to the company's second-quarter revenue growth of 11% over the prior year. The pharmaceutical giant's net income rose to $2.68 billion, or 89 cents per share, from $2.46 billion, or 82 cents, in the same period a year ago. The growth was largely fueled by a 20% increase in sales of medical devices and diagnostics, reaching $4.9 billion. This shift towards medical devices is a strategic move championed by CEO William C. Weldon, who credits the segment for the company's steady growth.

Key Takeaways:

Johnson & Johnson's second-quarter revenue increased by 11% to $12.76 billion, compared to $11.48 billion in the same quarter last year.
Medical devices and diagnostics segment sales grew by 20% to $4.9 billion, accounting for 38% of the company's global quarterly sales.
Pharmaceutical sales accounted for 44% of global quarterly sales, their lowest share since 2000.
Cordis Corp.'s circulatory products, DePuy Inc.'s joint reconstruction products, and Ethicon Inc.'s wound care and women's health products contributed to the medical devices segment's growth.
Quarterly sales of consumer products, including Neutrogena creams and Splenda sweeteners, rose by nearly 14% to $2.28 billion.
Top-selling pharmaceuticals included Remicade, made by subsidiary Centocor Inc.

Statistics:

Johnson & Johnson's second-quarter net income reached $2.68 billion, a 9% increase from $2.46 billion in the same period last year.
Earnings per share increased to 89 cents from 82 cents in the prior year.
Revenue growth in Johnson & Johnson's medical devices segment reached 20%, to $4.9 billion.
Pharmaceutical sales accounted for 44% of global quarterly sales, down from 51% in 2000.
Revenue growth in the consumer products segment was 14%, reaching $2.28 billion.
Top-selling pharmaceutical, Remicade, generated significant revenue.

Sources:

The Philadelphia Inquirer: "Johnson & Johnson's profits rise 11% on gains in medical devices sales" (no date) [http://www.philly.com/philly/business/20050720_Johnson_and_Johnson_s_profits_rise_11_percent_on_gains_in_medical_devices_sales.html](http://http//www.philly.com/philly/business/20050720_Johnson_and_Johnson_s_profits_rise_11_percent_on_gains_in_medical_devices_sales.html)
Knight Ridder/Tribune Business News: "Johnson & Johnson's profits rise 11% on gains in medical devices sales" (no date) [reprints@krtinfo.com](mailto:reprints@krtinfo.com)