Johnson & Johnson 2Q Net Income Slips By Half, Cuts 2012 Guidance

Xarelto, which Johnson & Johnson developed in partnership with German drugmaker Bayer AG, is already approved to reduce risk of blood clots in the legs and lungs of people who have had knee or hip replacement surgery. It is also approved to prevent strokes among people with an irregular heartbeat called atrial fibrillation. Reuters

Johnson & Johnson (NYSE: JNJ), the world's second-biggest health care company, said Tuesday that its second-quarter net income fell by half due to lower sales, litigation charges and unfavorable currency conditions. Johnson & Johnson also lowered its 2012 profit forecast.

Shares of Johnson & Johnson fell 1.17 percent, to $67.65 apiece, during Tuesday's premarket trading session after the company cut its full-year guidance.

The New Brunswick, N.J.-based company now expects 2012 earnings of $5 to $5.07 per share, down from its April forecast of $5.07 to $5.17 per share, excluding special items.

Net income was $1.4 billion, or 50 cents per share, compared with $2.8 billion, or $1 per share, in the year-ago period. Excluding several one-time items, Johnson & Johnson earned $3.6 billion, or $1.30 per share. This topped analysts' expectations by a penny. Revenue fell by 0.7 percent to $16.48 billion.

Worldwide consumer sales dropped 4.6 percent to $3.6 billion in the second quarter, with an operational increase of 0.6 percent and negative currency impact of 5.2 percent.

The company said international sales decreased 6 percent, reflecting an operational increase of 2 percent and negative currency impact of 8 percent. Sales in the U.S. fell 1.2 percent, while the largest dent in sales came from Western Europe, which declined 8.3 percent. Asia-Pacific markets remained the only bright spot, gaining 5.2 percent in sales.

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