Johnson & Johnson's revenue has slumped for a second straight year.
Revenue totaled $61.59 billion, down from $61.9 billion in 2009, even though J&J's 2009 fiscal year had a 53rd week.
The company's fourth quarter revenue fell to $15.64 billion from $16.6 billion a year ago. Analysts expected $16 billion.
The company's handling of 17 costly product recalls has been poor.
Consumer product sales fell 15 percent to $3.6 billion, with a whopping 29 percent plunge in the U.S. Sales of prescription drugs also fell.
Johnson & Johnson has been hurt by an eye-popping 17 recalls since September 2009 covering multiple McNeil Consumer Health products, plus contact lenses and hip replacements, and the lengthy shutdown of the McNeil factory. Lost revenue from the recalled products reduced 2010 sales by $900 million, 50% more than J&J predicted last year.
J&J took an after-tax charge of $922 million for litigation settlements, a recall of poorly fitting DePuy hip implants and increasing J&J's product liability reserve.
Last week Willie C. Weldon tried to reassure analysts and investors that all is well. Weldon, 62, said the company is committed to restoring its over-the-counter medicines to the quality level consumers expect. He gave no realistic solution to JNJ's problems.
Wall St. didn't buy his sales pitch. In a rare move for a diversified company, Wall Street has hammered the stock price. J&J's stock has lagged the benchmark S&P 500 Index over the past year and is below the $62 level where it traded five years ago.
Prominent analysts say the teflon has come off of JNJ.
2011 forecasts are being lowered. J&J forecast 2011 earnings per share of $4.80 to $4.90 but analysts were expecting $4.99 a share for 2011.
General economic concerns and uncertainty over how J&J will fix the consumer unit will likely keep the stock price from rising for at least a quarter or two. Further J&J will have a hard (and expensive) time winning back customers who've switched to cheaper store brands.
Another prominent analyst thinks it takes some ego for J&J to think that customers still think of it as a quality brand.
Investors may start pressuring J&J's board to push Weldon out -- as Pfizer Inc. did with its CEO last month, after 4 1/2 years of languishing share prices. However the J&J board has a lot of retired guys put on there by Weldon who are being kind to him.
Weldon is paid the big bucks to provide a solution but he has not provided one. And his appointed Board of Directors does little about it.
Revenue totaled $61.59 billion, down from $61.9 billion in 2009, even though J&J's 2009 fiscal year had a 53rd week.
The company's fourth quarter revenue fell to $15.64 billion from $16.6 billion a year ago. Analysts expected $16 billion.
The company's handling of 17 costly product recalls has been poor.
Consumer product sales fell 15 percent to $3.6 billion, with a whopping 29 percent plunge in the U.S. Sales of prescription drugs also fell.
Johnson & Johnson has been hurt by an eye-popping 17 recalls since September 2009 covering multiple McNeil Consumer Health products, plus contact lenses and hip replacements, and the lengthy shutdown of the McNeil factory. Lost revenue from the recalled products reduced 2010 sales by $900 million, 50% more than J&J predicted last year.
J&J took an after-tax charge of $922 million for litigation settlements, a recall of poorly fitting DePuy hip implants and increasing J&J's product liability reserve.
Last week Willie C. Weldon tried to reassure analysts and investors that all is well. Weldon, 62, said the company is committed to restoring its over-the-counter medicines to the quality level consumers expect. He gave no realistic solution to JNJ's problems.
Wall St. didn't buy his sales pitch. In a rare move for a diversified company, Wall Street has hammered the stock price. J&J's stock has lagged the benchmark S&P 500 Index over the past year and is below the $62 level where it traded five years ago.
Prominent analysts say the teflon has come off of JNJ.
2011 forecasts are being lowered. J&J forecast 2011 earnings per share of $4.80 to $4.90 but analysts were expecting $4.99 a share for 2011.
General economic concerns and uncertainty over how J&J will fix the consumer unit will likely keep the stock price from rising for at least a quarter or two. Further J&J will have a hard (and expensive) time winning back customers who've switched to cheaper store brands.
Another prominent analyst thinks it takes some ego for J&J to think that customers still think of it as a quality brand.
Investors may start pressuring J&J's board to push Weldon out -- as Pfizer Inc. did with its CEO last month, after 4 1/2 years of languishing share prices. However the J&J board has a lot of retired guys put on there by Weldon who are being kind to him.
Weldon is paid the big bucks to provide a solution but he has not provided one. And his appointed Board of Directors does little about it.