Summary Box: J&J sees sales rebound, profit drop

AP News
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Posted: Apr 19, 2011 2:06 PM
Summary Box: J&J sees sales rebound, profit drop

MIXED RESULTS: Johnson & Johnson says sales rebounded 3.5 percent after a two-year slump, but first-quarter profit dropped 23 percent, mainly due to product recalls, factory upgrade costs and a 2010 tax gain.

STRENGTHS: Overseas sales and worldwide prescription drug sales both jumped 7 percent, while revenue from medical devices rose 3.3 percent. J&J beat expectations and raised its 2011 profit forecast by 10 cents per share.

WEAKNESSES: Factory upgrades over recalls, mainly of consumer products, will cut earnings per share, and some products won't return to stores till late 2012.