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8-K - JOHNSON & JOHNSON | restructuringcover.htm |
Exhibit
99.1
Johnson
& Johnson Announces Restructuring Initiatives for Sustainable
Growth
Continues
to Invest in Promising Growth Opportunities
Identifies
Projected, Annualized, Pre-Tax Cost Savings of $1.4-$1.7 billion
Expects
to Take Associated Pre-Tax, Restructuring Charge of $1.1-$1.3 billion in Fourth
Quarter of 2009
Confirms
Earnings Guidance for 2009, Excluding Special Items
NEW
BRUNSWICK, N.J., Nov 03, 2009 /PRNewswire-FirstCall via COMTEX News Network/
--
Johnson
& Johnson (NYSE: JNJ) today announced global restructuring initiatives
designed to strengthen the company's position as the world's leading global
health care company. The company is taking steps to prioritize its innovation
efforts around the many growth opportunities in health care and to execute
aggressively on bringing key new products to market.
The
company's plans are expected to increase its operational efficiency and generate
annualized, pre-tax cost savings of $1.4-$1.7 billion when fully implemented in
2011, with $800-$900 million expected to be achieved in 2010. The associated
savings will provide additional resources to invest in new growth platforms;
ensure the successful launch of its many new products and continued growth of
its core businesses; and provide flexibility to adjust to the changed and
evolving global environment.
"Johnson
& Johnson has long adhered to a broad-based operating model and set of sound
management principles that have driven our success," said William C. Weldon,
Johnson & Johnson Chairman and Chief Executive Officer. "Today, we are
announcing a series of actions and plans designed to ensure that our company
remains well-positioned and appropriately structured for sustainable, long-term
growth in the health care industry."
The
company expects to record an associated pre-tax, restructuring charge in the
range of $1.1-$1.3 billion in the fourth quarter of 2009, treated as a special
item. The company also confirmed its earnings guidance for full-year 2009 of
$4.54 - $4.59 per share, which excludes the impact of special items such as
restructuring charges.
Cost
savings will be achieved primarily by reducing layers of management, increasing
individual spans of control, and simplifying business structures and processes
across the company's global operations.
Position
eliminations will form only one component of the savings. Weldon said, "These
types of changes are difficult under any circumstances, and will have a very
personal impact on people who have been dedicated to the mission of Johnson
& Johnson. We recognize their contributions to the achievements of our
business, and are committed to treating them fairly and with respect throughout
this process."
The
company said initiatives would be implemented at the operating company levels to
be certain the businesses can meet the needs of the customers they serve on a
day-to-day basis. The company estimates that position eliminations will be in a
range of 6-7 percent of its global workforce, subject to any consultation
procedures on these plans in countries where required.
About
Johnson & Johnson
Caring
for the world, one person at a time...inspires and unites the people of Johnson
& Johnson. We embrace research and science - bringing innovative ideas,
products and services to advance the health and well-being of people. Our
approximately 117,000 employees at more than 250 Johnson & Johnson companies
work with partners in health care to touch the lives of over a billion people
every day, throughout the world.
NOTE TO
INVESTORS
Johnson
& Johnson will conduct a conference call with financial analysts to discuss
this news release today at 9:00 a.m., Eastern Time. A simultaneous webcast of
the call for interested investors and others may be accessed by visiting the
Johnson & Johnson website at www.investor.jnj.com.
A replay and podcast will be available approximately two hours after the live
webcast by visiting www.investor.jnj.com.
(This press release contains
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995. These statements are based on current expectations of future
events. If underlying assumptions prove inaccurate or unknown risks or
uncertainties materialize, actual results could vary materially from Johnson
& Johnson's expectations and projections. Risks and uncertainties include
general industry conditions and competition; economic conditions, such as
interest rate and currency exchange rate fluctuations; technological advances
and patents attained by competitors; challenges inherent in new product
development, including obtaining regulatory approvals; domestic and foreign
health care reforms and governmental laws and regulations; and trends toward
health care cost containment. A further list and description of these risks,
uncertainties and other factors can be found in Exhibit 99 of the Company's
Annual Report on Form 10-K for the fiscal year ended December 28, 2008. Copies
of this Form 10-K, as well as subsequent filings, are available online at
www.sec.gov, www.jnj.com or on request from Johnson &
Johnson. Johnson & Johnson does not undertake to update any forward-looking
statements as a result of new information or future events or
development