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Johnson & Johnson, the US healthcare company, reported a steep drop in its second quarter earnings and lowered its profit forecast as currency headwinds and litigation costs held back its performance.
Net income at J&J fell 49.3 per cent year-on-year to $1.4bn, or 50 cents a share. Net sales were down by 0.7 per cent from the same period a year ago to $16.7bn.
Alex Gorsky, J&J’s new chief executive is under pressure to revive the company after a difficult stretch of embarrassing product recalls. On Tuesday he said J&J was on a path to building “a strong foundation for sustainable growth
In the second quarter, J&J was hit by costs related to the closing of its deal last year to acquire Synthes, the medical device company.
Last month J&J announced it would take a $600m charge to settle lawsuits over allegations of bribery and improper marketing of several drugs.
Sales in J&J’s consumer business fell 4.6 per cent year-on-year to $3.6bn, while pharmaceutical sales rose 0.9 per cent to $6.3bn.
The impact of the stronger US dollar was a drag on sales, and J&J cut its full-year earnings outlook to $5.00-$5.07 a share. J&J’s shares slipped 1.24 per cent to $67.60 in pre-market trading in new York.