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Johnson & Johnson now expects that its revenues in 2020 will amount to between 77.5 billion US $and $ 80.5 billion.
Johnson & Johnson expects that the pandemic COVID-19 to have a material impact on its financial health, and has reduced its forecast of sales of several billion dollars for 2020, as well as its expectations for its profits.
The manufacturer of health products is one of the first major u.s. companies to reveal its financial results for the first quarter, and these should give some indication of what is coming as the epidemic disrupts the global economy.
Johnson & Johnson now expects that its revenues in 2020 will amount to between 77.5 billion US $and $ 80.5 billion, while it was rather, in January, with a turnover of between 85,4 billion and 86.2 billion. It also provides for an annual income, adjusted per share to between US $7.50 and 7.90 US$, while it was expected four months ago to a profit per share of between 9,00 US $and US $9.15.
The company is faced with both the prospect of lower sales, a large part of the population being confined in their homes to avoid being infected, and to see costs climb as she starts in the race for the vaccine against the new coronavirus. Its chief executive, Alex Gorsky, said in a press release that Johnson & Johnson was engaged in the production availability of a vaccine affordable and accessible to the public, on a non-profit basis, for emergency use in the pandemic.
The manufacturer of the painkiller Tylenol and baby shampoo has shown very good results for its first quarter, with net profit up 55 %. But his quarter has ended well before the outbreak of the coronavirus sends the economy on a different trajectory.
The net profit was 5.8 billion, or US $2.17 per share, on revenues of 20,69 billion. In comparison, it was 3.7 billion, or US $1.39 per share, in the first quarter of 2019. After adjustments to exclude non-recurring items, the profit has reached $ 6.2 billion, or US $2.30 per share.