Investor Relations

2010 was what Johnson & Johnson's Chairman, William Weldon defined as "a year to be severely tested on numerous fronts". With an overall worldwide sales decrease of 1.3 percent operationally, they made $61.6 billion during the last fiscal year. In the Chairman's letter addressing the 2010 Annual Report, he speaks about facing the challenges of global economic downturn, a loss of patent exclusivity on major pharmaceutical products and the disappointment of the McNeil Consumer Healthcare product recalls. In turn J&J introduced new products, expanded business in emerging markets and continued their tradition of caring for their customers and clients.

With the several factors impacting the the health care industry, such as the U.S. health care reform, J&J expects to continue facing the challenges of the slowdown on medical devices and consumer business in 2011. Although they do have high hopes and continue to grow earnings while maintaining investments for future revenue and earnings growth. With these new investments they plan to develop a number of new products that should bring them back up during this tough global economy. Despite the sales decline of 1.3 percent, there adjusted earnings per share increase a total of 2.8 percent, $13.3 billion.

As for the McNeil Consumer Healthcare product recalls, Weldon promised to restore the the high levels of quality and compliance that people expect of Johnson & Johnson companies. He pledges to do so buy learning from that experience, addressing problems at their roots and ensuring that only the highest quality products reach their customers, which he expects to earn back trust and respect.

Johnson & Johnson holds their Credo to a high bar, stating that the source of their enduring strength is a fundamental commitment to their Credo and an operating model that has served them well for decades. The values articulated in their credo help them in every aspect of their company from upholding their reputation to maintaining their accounting and financial responsibilities to their shareholders and investors. They do their best to ensure that financial data is reported accurately in a way that facilitates the understanding of this data. To show this they contain a system of internal accounting controls, encourage strong and effective corporate governance from their Board of Directors and continuously review their business results and strategic choices, as well as focusing on financial stewardship.

Johnson & Johnson is a publicly funded company. It seems that even though they has faced some ups and down during the 2010 year, they keep solid objectives and tactics as to how to continue running a well established group of companies. They do their best to create competitive advantage, fulfill disclosure obligations and make sure their stocks and bonds are well valued in the market place.