J&J posts higher 2Q net income despite recalls |
| The Associated Press - Jul 20, 2010 |
Repeated recalls of popular Johnson & Johnson nonprescription medicines kept second-quarter revenue flat and forced J&J to cut its profit forecast, but a big drop in its tax rate enabled the healthcare giant to pull off a 7.5 percent increase in net income.
In a rare move, the maker of Band-Aids, birth control and biotech drugs on Tuesday reduced its 2010 profit forecast by 15 cents a share, sending its stock down $1.30 a share, or 2.2 percent, to $58.27 in afternoon trading — an unusually big drop for the huge global conglomerate.
Johnson & Johnson cited the recalls of tens of millions of bottles of Tylenol and other well-known brands, the long-term closure of the suburban Philadelphia factory that made some of them and unfavorable currency exchange rates.
J&J also disclosed that it has received a grand jury subpoena from the U.S. Attorney's Office in Philadelphia regarding the recalls and the company faces multiple lawsuits against McNeil related to the recalls. In addition, Congress is investigating how J&J handled at least one recall.
Read Full Article from The Associated Press
- Posted: 2010-07-20 13:50:22
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