Citing Negative Impact of COVID-19, Johnson & Johnson Reports That Second-Quarter Sales Declined 10.8 Percent

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NEW BRUNSWICK, N.J.—Johnson & Johnson (NYSE: JNJ) noted Thursday the negative impact of COVID-19 when it reported second-quarter results showing a sales decline of 10.8 percent (a decline of 9 percent on an operational basis) on a company-wide basis. J&J’s overall sales totaled $18.3 billion in the quarter. In the U.S., sales declined 8.3 percent to $9.5 billion. Net earnings also slipped in the quarter, to $3.63 billion from $5.6 billion in the year-ago period, a decline of 35.3 percent.

In its medical devices business (which includes contact lenses), J&J said worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined 32.5 percent on an adjusted basis. This was due primarily to “the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our surgery, orthopaedics, vision and interventional solutions businesses,” the company’s announcement noted.

In the U.S., sales in the vision category declined 46.1 percent on a reported basis to $248 million. Sales of contact lenses in the U.S. dropped 39 percent to $203 million (from $333 million in the year-ago period). In the international segment, contact lens sales fell 30.9 percent to $352 million (from $509 million). The company did not breakout contact lens sales by specific brands.

On a worldwide basis, sales in the vision segment fell 36.1 percent to $447 million from $701 million in the year-ago period.

J&J also noted that it is slightly increasing its full-year sales and earnings guidance (with 2020 sales now expected in the range of -0.8 percent to plus 1 percent) that it had provided in April during the height of the coronavirus pandemic.

“Our second quarter results reflect the impact of COVID-19 and the enduring strength of our pharmaceutical business, where we saw continued growth even in this environment,” chairman and chief executive officer Alex Gorsky said in the announcement. “Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives.”

Gorsky continued, “We are bringing together our best minds, our global footprint and our sophisticated supply chain technology to deliver on our commitment to provide the vaccine on a not-for-profit basis for emergency pandemic use, globally. We know the need is urgent, and every day we commit to doing our part to find a solution for the global good.”