- The company easily allows you to view their SEC 10-K filing right on the investor relations link from the website. The document is dated on February 16th, 2007 and allows all shareholders to access the information needed to see how JNJ performed for this fiscal year.
10-K and 10-Q
The 10-K annual report provides a comprehensive overview of Johnson & Johnson's business as of the end of each fiscal year. The 10-Q is filed quarterly following each of the first three fiscal quarters and includes unaudited financial statements and a current view of the Company's financial position as of the end of the quarter.A link to the document is below: http://www.shareholder.com/Common/Edgar/200406/950123-07-2542/07-00.pdf - From reviewing Johnson & Johnsons annual report I think their goal is to continue to reinstate the companies values and show earnings for the year. With 90% of the document being very technical information, and extremly long and wordy, as most annual reports are I would have to say that the goal is not to just tell its story. It is to get into the nitty gritty numbers and anaylsis of the products they offer to ther customers. However, in true Johnson and Johnson style the back cover of their annual report has their credo streatching throughout the whole page, ones again always reminding the public who and what Johnson and Johnson stands for. As with all annual reports, you expect them to get into great detail about facts and figures, earnings, financial statements, etc. It is a cut and dry as it can be, and only a very small amount of people are looking for this in-depth analysis so this is why they present the extensive information the way they have in their annual report.
- The compamnys letter to the shareholders from CEO, William C. Weldon is the first 4 pages of the annual report. It shows to express honesty about how the company has made record financial progress and growth to be expected in the near future. The key messages that are coming through are explaing what products worked very well and were aids in the success of JNJs financial earnings this year, and which one weren't like in the hopes of a product in the cardiovascular field with the aquisition of Guardiant Corporation. A year ago JNJ projected great expectations, however the CEO expresses his concern of looking out for the best interest of its shareholders, and this is why they decided not go continue to persure this business venture. The tone of the letter reassures the shareholder that JNJ has their best interest inmind, they are concerned for their shareholders and want to be informative with them about what worked and what didn't work for them this past year. The letter trys to reinstate all the positive values that JNJ's products continue to give to its consumers. For example the iconic Tylenol has yet again reinvented itself with the Rapid Release-fast acting gel tablets, showing that they are constantly reintroducing new ideas and bringing new life to old iconic products. The PR messages are not just told once, twice, but three times. From reviewing the letter the key message of "continued success and growth" are repeated and backed up with firm hard examples of how new and old products have preformed this year and the letter is summed up with a glance into the future at what new and upcoming products JNJ will be releasing within the next fiscal year to keep the company growing and evolving.
- The last news finanical news release related to JNJ's company's earnings can easily be found on the website: http://www.investor.jnj.com/releaseDetail.cfm?ReleaseID=204087&year=2006
- To me, the news release was written in a technical language filled with lots of percentages, numbers and graphs and tables.
News Release:
J&J posts improved earnings
Blue chip open to 'small to mid-sized' acquisitions
By Val Brickates Kennedy, MarketWatch
Last Update: 1:03 PM ET Apr 18, 2006
BOSTON (MarketWatch) -- Health-care behemoth Johnson & Johnson reported modestly improved first-quarter earnings Tuesday, but revenue fell slightly shy of expectations due to increased generic competition for several of its prescription drugs.
For the quarter ended March 31, J&J had net income of $3.3 billion, or $1.10 a share, which included a $368 million after-tax gain associated with the termination of a merger agreement with rival medical-device maker Guidant Corp.,which instead will be acquired by Boston Scientific Corp. in a deal expected to close within days.
This compared with $2.8 billion, or 94 cents a share, earned in the first quarter of 2005.
Excluding various items, New Brunswick, N.J.-based J&J would have had adjusted earnings per share of 99 cents.
Revenue for the latest quarter climbed 1.2% to $12.99 billion, up from $12.83 billion in 2005.
A poll of analysts by Thomson First Call had estimated J&J would have earnings of 98 cents a share, on revenue of $13.218 billion.
Shares of J&J, part of the Dow Jones Industrial Average, traded modestly higher but failed to keep pace with the blue-chip barometer's sharp gains. See interactive charting.
J&J attributed its sluggish top-line performance to increasing generic competition affecting several of its drugs that have lost patent protection. That shortfall was partially offset by growth in its medical-devices division, which markets such popular products as coronary stents and orthopedic joint replacements.
"Our first-quarter results were as anticipated and we look forward to improving performance throughout the balance of the year," said William Weldon, J&J's chief executive, in a release.
"We are continuing to make significant investments in research and development in order to bring important new products to market, positioning us well for long-term growth," Weldon added.
On a call with analysts, J&J's vice-chairman and chief financial officer said that at this point, it was unlikely that the company would beat the current Wall Street analysts' mean estimates of earnings per share of 97 cents for the second-quarter and $3.68 for the year 2006. However, Robert Darretta did reiterate that the company's profit range was $3.65 to $3.72 a share for the year.
Sales from the company's core pharmaceutical division were $5.6 billion, down 2.2% from last year, including a negative currency impact of 1.8%.
Quarterly domestic drug sales dipped 2.2%, J&J said, largely due to generic competition. The company said that painkillers Duragesic and Ultracet, along with the antifungal medication Sporanox, were hardest hit by generics.
J&J said its strongest performers continued to be psychiatric drug Risperdal, rheumatoid arthritis medication Remicade, antiepileptic drug Topamax, and Concerta, prescribed for attention deficit hyperactivity disorder.
The picture was rosier in J&J's medical-devices division. Medical device sales, which included sales of its popular Cypher drug-coated coronary stents, came in at $5 billion, up 4.5% from last year.
On the call, Darretta said that J&J was "uncomfortable" with recent moves by Medicare regulators to possibly limit reimbursements for procedures to implant cardiac medical devices, adding it might have a chilling effect on technological advancement.
"We're uncomfortable with the changes that have been suggested," said Darretta. "We're hoping regulatory authorities will make appropriate adjustments to the proposal."
Also faring relatively well was the company's vast consumer-products business. Sales grew 3.3% to $2.4 billion, with adult skin-care lines Neutrogena and Aveeno the standout performers.
Regarding acquisitions, Darretta said that J&J will remain on the lookout for attractive deals, although they will likely be "small to mid-sized" in nature. Val Brickates Kennedy is a reporter for MarketWatch in Boston.
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