J&J announces Q3 results
This article was originally published in The Rose Sheet
Executive Summary
Despite rosy outlook of many economists, Johnson & Johnson CFO and VP-Finance Dominic J. Caruso believes the recession continues to negatively impact U.S. consumer buying patterns and distributor inventory levels in the consumer products segment. During an Oct. 13 third-quarter call, the exec noted that the firm's "core strategy" for overcoming the slump is to "differentiate our products as well as focus on developing strong consumer brands." J&J's U.S. consumer business in the third quarter declined 4.4 percent to $1.69 billion, while the firm's international consumer product revenue was down 1.4 percent, at $2.3 billion; worldwide sales for the business slipped 2.7 percent to $4 billion. Its Aveeno and Dabao skin-care brands and Listerine mouthrinse performed well in Q3, firm notes. Separately, J&J has terminated its agreement with light-based cosmetic treatment developer Palomar Medical Technologies to develop and commercialize devices for reducing the signs of skin aging and reducing or preventing acne. Palomar intends to continue with the development of its home-use laser device to treat periorbital wrinkles, approved by FDA in June, and anticipates launching it in the second half of 2010 (1"The Rose Sheet" June 8, 2009)