Among the tumult in the markets today and the rash of quarterly reports, health care products manufacturer Johnson & Johnson (NYSE: JNJ) reported a solid quarter, and UAL Corp. (NASDAQ: UAUA), parent of United Airlines, reported that it had narrowed its loss.
Johnson & Johnson's profit increased almost 10 percent in the fourth quarter as revenues soared, despite decreasing sales for two key product lines. Net income was $2.37 billion, or 82 cents per share, up from $2.17 billion, or 74 cents per share, a year earlier. (Excluding one-time items, net income would have been 88 cents per share.) Revenues reached $15.96 billion (mostly coming from overseas), up 16.6 percent from $13.7 billion in the same quarter a year ago. Analysts surveyed by Thomson Financial had expected earnings of 86 cents per share, excluding one-time items, on revenues of $15.4 billion. For the full year, the company reported net income of $10.6 billion, or $3.63 per share, down slightly from $11.05 billion, or $3.73 per share, in 2006. J&J said it expects earnings per share for 2008 to total $4.39 to $4.44, excluding one-time items, which was in line with analysts' expectations. Shares fell 1.54 percent Tuesday, to close at $65.27.
UAL reported a less-than-expected $53 million loss for the fourth quarter on a sharp increase in the price of fuel and bad weather over the holidays. The net loss for the final three months of 2007 was 47 cents a share, better than the loss of $61 million, or 55 cents a share, in the same quarter a year ago. Revenue was $5.03 billion, up 9.7 percent from $4.59 billion a year ago, partly due to higher fares. Analysts polled by Thomson Financial had expected a loss of 89 cents per share and revenue of $4.95 billion. Despite its first loss since the first quarter of 2007, the company still posted net income of $403 million for the full year -- its first annual profit since 2000. Shares closed down 3.25 percent Tuesday, at $31.87.
CEO Glenn Tilton was mum about merger talks rumored to be under way with Delta Air Lines (NYSE: DAL).
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Reader Comments (Page 1 of 1)
1-22-2008 @ 10:06PM
Mark said...
Seems as if things are looking rather well for the company. They failed to mention what 2 key product lines had declined. Was one of them their duragesic pain patch? How have the numerous patch lawsuits affected their sales and J&J's bottom line? More than likely not at all with the diversity of products they sell.