J&J; net drops 8% on decline in sales

Healthcare products maker Johnson & Johnson said its third-quarter profit fell about 8% because of a charge for cutting jobs and lower sales of top sellers, including stents and a key drug hurt by safety questions.

The New Brunswick, N.J.-based maker of contraceptives, contact lenses, prescription drugs and baby products also increased its earnings forecast for the full year.

J&J; earned $2.55 billion, or 88 cents a share, in the July-September period, compared with $2.76 billion, or 94 cents, a year earlier.

Revenue rose 13% to $14.97 billion, helped by strong international sales and the stable of popular consumer products it acquired last December from Pfizer Inc.

In July, J&J; said it would reduce its global workforce by as much as 4% -- as many as 4,820 jobs -- to cut costs in response to slumping sales of heart stents and its No. 2 drug, anemia treatment Procrit, plus looming patent expirations.

Chief Financial Officer Dominic Caruso said most layoff notices had already been given and other changes were completed or near completion.

The third-quarter results include a related charge of 18 cents a share, or $528 million after taxes. Excluding that, J&J; earned $1.06 a share. Analysts surveyed by Thomson Financial had expected 99 cents a share and revenue of $14.84 billion.

J&J; shares slipped 58 cents to $65.07.

The company raised its earnings guidance for the full year, excluding special items, to $4.10 to $4.13 a share from $4.02 to $4.07.