Sunday, April 22, 2012

DePuy ASR recall takes $271M from J&J's Q1 bottom line

MassDevice staff
Litigation expenses and recall costs related to Johnson & Johnson's recall of the DePuy ASR hip implant cost the health care conglomerate $271 million in profits during the 1st quarter.
Shares of Johnson & Johnson (NYSE:JNJ) closed up a hair yesterday after the company said it added 12.5% to its bottom line, ending the day at $64.22 per share after the J&J raised its earnings guidance for the year by a pair of pennies.

The New Brunswick, N.J.-based health care conglomerate said costs associated with the recall of its DePuy ASR metal-on-metal hip implant and with litigating the 100s of personal injury lawsuits filed over the device slashed $271 million from its quarterly profits.

J&J posted profits of $3.91 billion, or $1.41 per share, on sales of $16.14 billion for the quarter, for essentially flat sales compared with profits of $3.48 billion, or $1.25 EPS, on sales of $16.17 billion during Q1 2011.

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