JNJ

Johnson & Johnson (JNJ) posted a 3.6% drop in second-quarter profit, as results topped analysts' expectations while being hurt by the stronger dollar and generic competition for top drugs. "I am proud of the accomplishments of our people in continuing to deliver very solid operational results in light of the significant impacts of patent expirations and the economic environment," said Chairman and Chief Executive William C. Weldon.

Shares of J&J, which reiterated its 2009 earnings target, were up 1.8% premarket at $58.76. Trying to counter drug-patent expirations, J&J has recently reached a $1.5 billion Alzheimer's drugs-marketing deal with Elan Corp. (ELN) and acquired Cougar Biotechnology Inc. (CGRB), a developer of cancer drugs, for about $1 billion. It also is seeking to regain full marketing rights to arthritis treatment Remicade. Analysts surveyed by Thomson Reuters were expecting earnings of $1.11 a share on revenue of $15.02 billion.

J&J, whose products range from Band-Aid bandages to the Procrit anemia drug, reported earnings of $3.21 billion, or $1.15 a share, down from $3.33 billion, or $1.17 a share, a year earlier. Revenue fell 7.4% to $15.24 billion, with six percentage points of the decline coming from the stronger dollar. U.S. sales fell 6.7% while international sales fell 8%; excluding currency changes, overseas revenue rose 3.9%. The latest quarter saw the formerly fast-growing consumer health-care unit post a 4.5% sales drop; excluding currency changes it would have reported 3.1% growth. The device unit, which includes contact lenses and diabetes-test strips, saw sales decline 3%; it would have risen that much minus currency impacts.