J&J profit rises but growth still limited

NEW YORK/CHICAGO - Johnson & Johnson today posted a 9 per cent rise in quarterly profit on higher-than-expected sales of its consumer products and prescription medicines, but shares fell on lingering concern over long-term growth prospects.

The diversified health-care company earned US$2.82 billion ($4.6 billion), or US95 cents per share, in the second quarter. A year go it earned US$2.59 billion, or 86 cents per share.

Excluding special items, J&J earned US98 cents per share. Analysts, on average, expected US97 cents per share, according to Reuters Estimates.

While results slightly topped expectations, analysts expressed concern that profit growth has slipped in the past year due to generic competition for a number of its medicines -- and it remains unclear how long it will take new medicines and medical devices to restore lost momentum.

Shares were down 1.4 per cent in early afternoon trade.

- REUTERS