Johnson & Johnson: Recalled drugs delayed again

By Parija Kavilanz, senior writer


NEW YORK (CNNMoney) -- Johnson & Johnson said Tuesday that consumers may have to wait until the end of the year before drugstore shelves start to fill up again with its recalled children's Tylenol, Motrin and Bendryl.

During a meeting with analysts and investors, company executives said J&J (JNJ, Fortune 500) had shipped a small amount - about 4 million bottles of Children's Tylenol - to stores last quarter.

J&J had hoped to restock retailers with all the recalled children's medicines by the middle of 2011. However, executives said Tuesday that retailers wouldn't receive adequate supplies of those medicines until the later half of the year, "slightly later than expected."

J&J halted production at its Ft. Washington Pa. plant in May, where its pediatric pain and cold drugs are manufactured, following a recall of millions of those medicines for quality concerns. Facing shortages, It shifted production to one of its Canadian plants hoping to normalize supplies.

Also on Tuesday, Johnson & Johnson (JNJ, Fortune 500) reported fourth-quarter profits that met analysts' estimates, despite softer-than-expected sales.

The company said sales in the quarter were significantly hurt by its numerous recalls of Tylenol, Motrin and Benadryl products and the suspension of manufacturing at the the Fort Washington plant.

Those recalls, followed by an absence of those medicine in stores, significantly hurt the company's over-the-counter drugs business. Its OTC sales tumbled 53% in the fourth quarter, costing the company $300 million in lost sales in the period as $900 million in lost sales for the year.

Johnson & Johnson also issued a full-year 2011 profit outlook of between $4.80 to $4.90 a share, also weaker than analysts' estimates.

Analysts, on average, had expected the company to earn $4.97 a share on average for the year, according to Thomson Reuters.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,042.90 -28.32 -0.17%
Nasdaq 4,493.39 -12.46 -0.28%
S&P 500 1,972.29 -5.51 -0.28%
Treasuries 2.51 0.02 0.68%
Data as of 6:00am ET
Company Price Change % Change
Ford Motor Co 14.79 -0.32 -2.12%
Bank of America Corp... 17.05 0.04 0.24%
eBay Inc 56.63 3.97 7.54%
Apple Inc 100.75 0.64 0.64%
General Electric Co 25.62 0.20 0.79%
Data as of Sep 30

Sections

CNNMoney's Italian-American investing correspondents did a taste test of Olive Garden's food. They agree with hedge fund Starboard: It's not very appetizing. More

Even limited air operations could cost up to $4 billion a year, says a think tank, while large ground forces could cost $1.8 billion a month. More

Pro-democracy protesters in Hong Kong are using FireChat to improve communication and organize. More

On Wednesday, 17% of First Green Bank's 66 employees will get a raise under the company's new "living wage" program. The guarantee: At least about $30,000 a year. More

This mom of four only makes $29,000 a year and is losing $400 a month because the state is garnishing her paycheck over a debt. Now she is about to be evicted from her apartment. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.