J&J Beats Profit Expectations

Johnson & Johnson (JNJ Quote) jetted past Wall Street's second-quarter earnings targets Tuesday, benefitting from foreign exchange rates and growth in its non-pharmaceutical segments. The company also increased its full-year 2008 outlook.

Shares were up $1.06, or 1.6%, at $67.47 in recent trading Tuesday morning.

The New Brunswick, N.J.-based drug and health-care products company recorded profit of $3.3 billion, or $1.17 a share. Factoring out an R&D charge of $40 million tied to its Amic acquisition, the company said it earned $3.4 billion, or $1.18 a share. Sales increased 8.7% year over year to $16.5 billion.

Wall Street analysts, on average, were looking for $1.12 a share on revenue of $16 billion, according to Thomson Reuters.

Worldwide Medical Devices and Diagnostics sales increased 12.1% year over year to $6.1 billion with a positive impact from currency of 6.4%. U.S. sales increased 4%, while international sales climbed 19.7%, including a 12.4% benefit from currency.

Consumer sales increased 13.2% to $4 billion on a worldwide basis -- with an 8.5% increase in U.S. sales and a 17% increase in international sales (11.4% of that from currency). The company said these increases reflect the U.S. launch of over-the-counter Zyrtec, and strong sales of Listerine and whitening products, baby care products and skin care lines Neutrogena, Clean & Clear and Aveeno.

Currency helped out declining pharmaceutical sales. Worldwide Pharmaceutical sales grew just 3.1% to $6.3 billion -- with an operational decline of 1.3% and a positive impact from currency of 4.4%. U.S. sales decreased 1.7%, and international sales increased 11.3%, including an operational decline of 0.6% and a positive currency impact of 11.9%.