After the big layoff and transformation, the performance of Johnson & Johnson Medical Equipment Department is no longer the worst
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Last Update: 2016-04-21
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Source: Internet
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Author: User
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Source: on April 21, 2016, Johnson & Johnson, a global consumer goods and pharmaceutical giant, released its first quarter financial report on April 19, 2016, in which the medical device sector is no longer the worst performing According to the financial report, the company's first quarter sales revenue was $17.48 billion, a slight increase of 0.6% compared with the first quarter of last year; its net profit was $4.29 billion, a slight decrease compared with the same period last year Alex Gorsky, chief executive of Johnson & Johnson, was pleased with the result, calling it a "strong start." The company also raised its full year revenue forecast by $400 million to $71.2 billion to $71.9 billion The first quarter's revenue is specifically divided into three business sectors, with drug sales of US $8.18 billion, up 5.9% year-on-year, which is the largest and most profitable Department of the company at present; consumer goods decreased by 5.9% year-on-year, with revenue of US $3.19 billion; medical equipment revenue of US $6.11 billion, down 2.4% year-on-year The medical device business used to be the largest department of Johnson & Johnson, but its performance in recent years has been weak, surpassed by the pharmaceutical sector, and the decline is obvious In fy2015, Johnson & Johnson Medical device sales fell 8.7% year-on-year, becoming the worst performing sector (pharmaceuticals and consumer goods fell 2.7% and 6.8%, respectively) Due to poor performance, Johnson & Johnson began to transform and restructure its medical devices Since last year, it sold cordis, a cardiovascular business unit, and bought neuwave, a developer of microwave ablation equipment In addition, it worked with Google to develop new surgical robots, and with carbon3d to develop customized 3D printing surgical devices At the same time, in January, Johnson & Johnson announced that it had cut 3000 jobs in its medical devices division, accounting for 4-6% of its global jobs The cut-off includes orthopedic, surgical and cardiovascular devices, but not consumer devices, vision care and diabetes care products The cost savings are used to develop innovative products After the big layoffs and restructuring, the decline of Johnson & Johnson's medical device business has narrowed significantly from the performance in the fourth quarter of last year and the first quarter of this year, and it is no longer the worst performance In the first three quarters of last year, the medical device business fell by 10.4%, but in the fourth quarter, there was only a small decline In the first quarter of this year, the year-on-year decline was only 2.4% In contrast, the consumer goods sector fell 7.9% in the fourth quarter of last year and 5.9% in the first quarter of this year Both quarters have surpassed medical devices as the worst performing sector.
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