THE WHAT? Johnson & Johnson has announced its results for the second quarter of fiscal 2020. The US health care giant said that sales had plummeted 10.8 percent (compared to the prior year quarter) to US$18.3 billion, although the company was upping its full year sales and EPS guidance.
THE DETAILS Only the pharmaceutical division bucked the downward trend, growing 2.1 percent over the quarter, while consumer health dipped 7 percent, the medical devices sales fell 33.9 percent and the ‘worldwide’ division dropped 10.8 percent.
However, the company remains optimistic about the full year, adjusting its operational sales guidance from the -3 to +0.5 percent range to a more cheery -0.8 to 1 percent.
THE WHY? Alex Gorsky, Chairman and CEO attributed the sales and EPS decline to the COVID-19 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,” said Alex Gorsky, Chairman and Chief Executive Officer. “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,” he said.