Yahoo Finance Johnson & Johnson’s Segment Performance in 2Q15
An Investor’s Guide to Johnson & Johnson's 2Q15 Earnings
Performance by business segment
Johnson & Johnson’s (JNJ) overall business is classified into three segments: Consumer Healthcare, Pharmaceuticals, and Medical Devices.
Revenues by segment
Consumer Healthcare contributes nearly 19.5% to Johnson & Johnson’s total revenues. The segment reported revenues of $3,483 million for 2Q15, a decrease of 7% compared to 2Q14. An operational increase of 2.3% was set off by a negative currency impact of 9.3% during 2Q15. Operational performance was driven mainly by oral care products, OTC (over-the-counter) products, and women’s health products.
The Pharmaceuticals segment, which contributes nearly 44.5% of total JNJ revenues, reported revenues of $7,946 million for 2Q15, a fall of 6.6% over 2Q14. An operational increase of 1% was set off by a negative currency impact of 7.6% during 2Q15. The operational performance was mainly driven by products like Xarelto, Simponi, Stelara, and Concerta.
Medical Devices contributed nearly 36% of total revenues by reporting revenues of $6,358 million for 2Q15, a decrease of 12.2% over 2Q14. There was an operational decrease of 4.7% and a negative currency impact of 7.5% during 2Q15. The operational performance was largely set off by lower sales of its diabetes franchise. Also, the company divested its ortho-clinical diagnostic franchise in June 2014.
We’ll look at key products separately in the coming articles. Companies such as Unilever NV (UN) and Procter & Gamble (PG) compete with JNJ’s consumer health segment. Medtronic (MDT) and Stryker (SYK) compete with its medical devices segment. Investors can consider ETFs like the Health Care Select Sector SPDR ETF (XLV) in order to divest the risk.
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