Johnson & Johnson was hit with massive quarterly loss, which it is associating with the recent U.S. tax changes.
The New Brunswick-based health care giant said Tuesday it lost $10.7 billion, or $3.99 a share, due to a $13.6 billion special item charge related to the recent tax legislation.
Excluding the special item tax and other profits and charges, Johnson & Johnson earned approximately $4.8 billion, or $1.74 a share, for the quarter. Its sales revenue was about $20.2 billion.
“Johnson & Johnson delivered strong adjusted earnings per share growth of 8.5 percent and total shareholder return of greater than 24 percent in 2017, driven by the robust performance of our pharmaceutical business, while continuing to make investments in acquisitions, innovation and strategic partnerships to accelerate growth in each of our businesses,” said Alex Gorsky, chairman and CEO. “As we enter 2018 and look beyond, we are experiencing an incredible pace of change in health care. Johnson & Johnson is uniquely positioned to lead during this dynamic era and deliver innovative solutions for patients and consumers that drive sustainable, long-term growth.
“We are pleased with the passage of recent legislation modernizing the U.S. tax system, which enables Johnson & Johnson to invest in innovation at higher levels to help address the most challenging unmet medical needs facing health care today.”
Johnson & Johnson expects its sales to grow in 2018, with earnings to be around $80.6 billion to $81.4 billion, or $8 to $8.20 a share.