J&J reports big leap in Q1 sales from emerging markets

New Jersey-based personal care and pharmaceuticals player Johnson & Johnson reports big gains in first quarter sales as emerging market help prop up a sagging domestic market.

The company said that sales grew by 3.5 percent during the period finishing March 31st to reach $16.2bn, a figure that saw domestic sales slide by 0.6 percent, while international sales increased by 7.3 percent.

This figure reflected operational growth of 4.1 percent as well as a further positive impact from foreign currency translation to the tune of 3.2 percent.

Net earnings increased to $3.5bn, a 23.2 percent decrease on the same period last year. The company said that the figure was impacted by a $271m charge for taxes as well as recalls relating to pharmaceutical lines, and otherwise the figure would have increased approximately 3.2 percent to $3.6m.

Worldwide consumer sales, which also includes the company’s eponymous baby care brand, fell by 2.2 percent to $3.7bn, representing an operational decline of 4.1 percent.

Again, the domestic market was hard hit by challenging retail condition, with sales falling by 13.8 percent, a figure that was counterbalanced by a 5.9 percent increase in sales from international markets.

However, the company’s pharmaceutical sales picked up considerably during the quarter, reflecting the fact that it is now starting to recover from a series of damaging recalls.

Sales for the division increased by 7.5 percent to $6.1bn during the quarter, an increase of 7.5 percent, a figure that was driven by an 5.8 percent increase in domestic sales as well as a 9.7 percent increase in international sales.

Similar gains were seen in its medical division, with sales increasing by 3.3 percent to $6.4bn.

Given the recovery in the company’s pharmaceutical division, the company said it was raising its earnings guidance for the full year 2011, and sticking to previous sales forecasts.