New Brunswick (US), July 16: Health care giant Johnson & Johnson today posted a 27 percent drop in earnings for the second quarter as acquisition-related costs overshadowed strong sales growth. Including one-time charges totaling $900 million, second-quarter net income fell to $1.21 billion, or 40 cents per share, from $1.65 billion or 54 cents a share. The charges are related to acquisitions: $730 million for Scios Inc. and $170 million for Link Spine Group Inc.

Operating income was $2.1 billion, or 70 cents per share, which beat by a penny the consensus forecast of analysts surveyed by Thomson first call. In the year-ago quarter, operating income was $1.8 billion, or 60 cents per share.

Net sales totaled $10.3 billion, up 14 percent from $9.07 billion a year earlier.


"This is the first quarter in our history that sales have passed the $10 billion mark," Helen Short, vice president for investor relations, told analysts during a conference call.

For the first six months, net income was $3.3 billion, or $1.09 per share, down 6 percent from $3.5 billion, or $1.13 per share, a year earlier. First-half operating income was $4.2 billion, up 14 percent from $3.7 billion.


First-half sales totaled $20.2 billion, up 13 percent from $17.8 billion in the first six months of 2002.

J&J shares rose 24 cents to $53.84 in trading Tuesday on the New York Stock Exchange.
Bureau Report