Johnson & Johnson forecast weaker sales in 2016

The American manufacturer of pharmaceutical and consumer products Johnson & Johnson predicts weaker than analysts expected sales for 2016 and reported a decline in sales of 2.4% for the fourth quarter of 2015 due to the stronger dollar. The company said it expects annual sales in 2016 of between 70.8 billion USD and 71.5 billion USD. The average estimate of analysts was for sales of 71.88 billion USD. In 2015, almost 50% of the revenues of the group came outside the US. The net profit of the company grew by 28% to 3.22 billion USD, or 1.15 USD per share, in the fourth quarter. As an adjustment to one-off effects, however, the profit amounted to 1.44 dollars per share, above the average estimate of analysts of 1.42 USD per share. Sales fell to 17.81 billion USD, but largely correspond to the average estimate of analysts of 17.88 billion USD.

The manufacturer of medical supplies, which last week said it would cut 3 thousand jobs in difficulties his department medical devices over the next two years, expects adjusted earnings of 6.43 to 6.58 USD per share in 2016. The consensus forecast of analysts was for earnings of 6.38 dollars per share.

The Chief Financial Officer Dominic Caruso told, that according to the company that the impact of the strong dollar will decline this year. The currency had put pressure by about 7-7.5% on sales in 2015, but his shot Caruso predicted to soften to 1.5% this year.

“We’ll have to see where really directs the currency, but these are our expectations for 2016”, he said.

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