Johnson & Johnson profit outlook takes a knock from stronger dollar

[July 19, 2022]  (Reuters) -Johnson & Johnson on Tuesday cut its full-year adjusted profit forecast for the second straight quarter as a stronger dollar dragged on its sales outside the United States.

The company now expects a full-year adjusted profit of $10.00 to $10.10 per share, from its prior forecast of $10.15 to $10.35.

Major U.S. multinationals, including Microsoft Corp and Coca-Cola Co, have warned of a knock from the strength of the U.S. currency, driven by fears of a global recession.

Johnson & Johnson's net earnings fell to $4.81 billion, or $1.80 per share, in the second quarter, from $6.28 billion, or $2.35 per share, a year earlier.

Sales at pharmaceuticals, J&J's biggest business, rose 6.7% to $13.32 billion.

People pose with syringe with needle in front of displayed Johnson & Johnson logo in this illustration taken, December 11, 2021. REUTERS/Dado Ruvic/Illustration

The pharmaceuticals unit has helped the company soften the blow from its pandemic-battered medical device business in the past few quarters.

In the reported quarter, sales at the company's medical devices unit fell 1.1% to $6.90 billion, hurt by "COVID-19 related mobility restrictions in certain regions".

(Reporting by Manas Mishra in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)

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