Johnson & Johnson's revenue fell far short of Wall Street expectations and it cut its full-year profit forecast for the second time this year, citing repeated recalls of Tylenol and other consumer medicines.
J&J, whose shares fell 1.5 percent, said global sales of consumer products fell 5.4 percent in the second quarter to $3.6 billion. They were hurt by four major product recalls in the past year, and several smaller ones.
Sales were also hurt by the closure in late April of a plant in Fort Washington, Pennsylvania, where 40 children's products ran afoul of FDA quality-control safeguards and were taken off the market.
Results were also hampered by a slowdown in sales growth for its medical devices and diagnostics. Device sales rose only 4.1 percent in the second quarter, compared with the prior quarter's 12.5 percent advance.
Growth was crimped because its Cypher heart stent lost ground to Abbott Laboratories Inc's more popular and newer Xience brand.
Johnson & Johnson earned $3.45 billion, or $1.23 per share, in the quarter. That compared with $3.21 billion, or $1.15 per share, a year earlier.
Excluding special items, J&J earned $1.21 per share, matching the average forecast of analysts polled by Thomson Reuters I/B/E/S.
J&J's global quarterly sales edged up 0.6 percent to $15.33 billion, well below the Thomson Reuters forecast of $15.64 billion.
The company cut its full-year 2010 profit view to between $4.65 and $4.75 per share, from its forecast of $4.80 and $4.90 in April, when it also slightly cut its profit forecast.
J&J's shares were down 1.5 percent to $58.65 in premarket trading.
(Reporting by Ransdell Pierson; Editing by Derek Caney)