Essay on Johnson Johnson Financial Analysis

4769 Words Nov 18th, 2011 20 Pages
Universidad Interamericana de Arecibo
MBA Program of Business and Administration

Johnson & Johnson: Company Analysis
By: Rosemarie Aviles

I. INTRODUCTION The purpose of this paper is to analyze the financial performance of Johnson & Johnson. The analysis includes a brief background of the company, discussion over the economic outlook and market competition, followed by its financial performance, and article that talks about the company’s portfolio and credit ranking. Comments about the company’s future are also included along with the conclusion and references.

II. BACKGROUND

Johnson & Johnson Corporation was founded in 1886 by Robert Wood Johnson, an American entrepreneur and industrialist. Inspired
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1994: Neutrogena Corporation is acquired.
1995: Merck and J & J launch Pepcid AC; company acquires the clinical diagnostics unit of Eastman Kodak Company.
1996: J & J acquires Cordis Corporation.
1998: DePuy, Inc. is acquired, and a companywide restructuring is launched.
1999: Centocor, Inc. merges with J & J.

III. ECONOMIC OUTLOOK

Johnson & Johnson continues to deliver earnings growth in 2010, with many of these businesses performing well in light of the macroeconomic conditions. Several factors impacted the health care industry in general and Johnson & Johnson. Medical devices and consumer businesses felt the effects of a continued economic slowdown. In health care, they anticipate continuing to feel those effects in 2011. There were costs associated with U.S. health care reform, which was implemented early in the year. In addition, they faced lost sales and remediation costs resulting from our consumer over-the-counter product recalls, as well as generic competition in our pharmaceuticals business. Despite these headwinds, they continued to grow earnings while maintaining investments for future revenue and earnings growth. With these investments, they are developing a number of exciting new products that have the potential to address significant unmet health care needs.
Worldwide sales for 2010 were $61.6 billion, a decrease of 1.3 percent operationally (reflecting the challenges noted as well as the 53rd accounting week

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