Lawsuits and product recalls undermine J&J 2Q results
This article was originally published in Scrip
Executive Summary
Lawsuits and product recalls had a negative but not unexpected impact on Johnson & Johnson's second quarter profits, although currency exchange rates and pharmaceuticals provided a welcome boost to revenues. Net income declined by 20% to $2.8 billion ($1 a share) from $3.4 billion ($1.23 a share) in 2Q 2010. Johnson & Johnson was hit by expenses associated with litigation, the recall of brands such as Tylenol and Motrin, and restructuring issues.