Sales of Johnson & Johnson reduced, but profit recorded a slight growth

The Largest U.S. company to produce consumer goods and medical products Johnson & Johnson has increased its profit by 1.1% yoy in the third quarter thanks to cost cuts and increased sales of medical devices. The net profit of Johnson & Johnson for the period from July to September amounted to 3.35 billion dollars or 1.20 dollars per share, compared to the positive financial result of 3.31 billion dollars or 1.17 dollars per share for same quarter of 2008, cited by Bloomberg. Sales of New Jersey-based company fell by 5.3 percent annually to 15.1 billion dollars. Economists had expected to Johnson & Johnson reported earnings per share of 1.13 cents and sales of 15.2 billion dollars in the third quarter. In April, the leadership of Johnson & Johnson said it would cut 900 jobs at its pharmaceuticals unit after the drug sales fell 14 percent due to cheaper alternatives offered by competitors. For the fiscal 2009 the company expects earnings per share from 4.54 to 4.59 dollars, which is higher than previous estimates. Shares of Johnson & Johnson became cheaper by 2.4 percent to 61.05 dollars per share at the beginning of today's session of the New York Stock Exchange. Since the beginning of this year, the company's market capitalization has risen by 2 percent to 168.2 billion dollars. Johnson & Johnson is a component of one of the oldest stock index Dow Jones IA since 1997, making it among the 30 largest and liquid companies traded on the New York Stock Exchange.