News Summary: Higher costs cut J&J 1Q net 10 pct.

News Summary: Johnson & Johnson's 1Q profit down 10.6 pct as higher costs offset rising sales

Associated Press

PROFIT DROP: Johnson & Johnson's first-quarter profit declined 10.6 percent to $3.5 billion, or $1.22 per share, mainly on litigation and acquisition charges and higher costs for production and administration.

REVENUE REBOUND: Sales totaled $17.51 billion, up 8.5 percent, as revenue jumped 11 percent or more for the prescription drug and medical devices and diagnostic segments. Even consumer health sales, hurt by three years of product recalls that kept Tylenol, Motrin and other brands out of stores, rose 2.2 percent.

DISCOUNT DEMANDS: Pressure from insurers and government health programs is forcing down prices for many prescription medicines and medical devices.

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