Johnson & Johnson ($JNJ) posted a 0.1% decrease in device sales for the second quarter, and that unit was something of a bright spot for the biotech giant, which reported a 49% earnings drop for Q2.
J&J pulled in about $6.6 billion in device sales, an operational increase of 3.4% that was wiped out by a negative currency impact of 3.5%, the company reported. On the whole, J&J reported a profit of $1.4 billion, down from $2.8 billion in Q2 of 2011. To blame for the loss: Device recalls, large settlements related to the Risperdal fallout and a negative currency impact of about 4.2% on net sales.
The company has scaled back its 2012 per-share earnings estimate by 10 cents as a result, down to between $5 and $5.07, The Wall Street Journal reports.
But J&J is eyeing a boost in its device wing thanks to some Q2 M&A. The company bought Synthes for about $20 billion--its biggest deal ever--and is looking to expand its orthopedic offerings as a result. That acquisition brought a 1.2% sales jump on its own last quarter, according to the WSJ.
In order to clear regulator hurdles, J&J offloaded its DePuy trauma device business to Biomet for $280 million in the process. On the whole, the Synthes deal will create "the world's most innovative and comprehensive orthopedics business," the company said in a statement.
- read J&J's release
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