THE WHAT? Johnson & Johnson (J&J) has posted higher Q3 sales and earnings, however has conceded that it may make modest cuts to its workforce due to inflation pressures and the planned separation of its consumer health business.
THE DETAILS The company reported a quarterly profit of US$4.46 billion, or US$1.68 a share, up from US$3.67 billion, or US$1.37 a share, YOY. Sales rose 1.9 percent to US$23.79 billion.
Speaking in an interview, Chief Financial Officer Joseph Wolk said, “We’re not immune to some of the economic pressures that are out there just like many companies are facing in many industries. So, we’re taking this opportunity to really look at the resources, how we deploy them.”
Wolk stated that various job functions would be affected, however, that it wouldn’t be a major restructuring.
J&J’s consumer-health sales declined slightly to US$3.8 billion while pharmaceuticals reported sales of US$13.2 billion, up 2.6 percent YOY.
The company reduced its full-year sales guidance to a range of US$93 billion to US$93.5 billion.
THE WHY? Joaquin Duato, Chief Executive Officer stated, “Our third quarter performance demonstrates our continued strength and resilience across all three of our businesses.
“Through the ongoing efforts of our teams around the world, we continue to navigate the dynamic macroeconomic environment and remain focused on delivering transformative healthcare solutions. Looking ahead, I remain confident in our business and ability to continue advancing our innovative portfolio and pipeline.”
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