Profits for the year were $10.4 billion, an increase of 22.4% as compared with 2004, whilst sales for the fourth quarter of $12.6 billion represented a decline of 1.1% as compared to the fourth quarter of 2004.
Sales of medical devices and diagnostics showed a healthy increase of 13% from the previous year, but this was somewhat undermined by the pharmaceuticals section of the business which posted a lower than expected increase of just 0.9% versus the prior year.
J&J appears to have missed out to Boston Scientific’s $27 billion bid in its attempt to further boost its devices business by purchasing heart device makers Guidant Corporation. The company is now likely to be considering its options to ensure its future growth, with access to the cardiovascular device market likely to remain high on its list of priorities.
“The year 2005 was a solid one for Johnson & Johnson, despite significant challenges,” said William Weldon, Chairman and CEO. “We delivered excellent full year earnings results, while continuing to make the major investments that will fuel future growth.”