Healthcare giant Johnson & Johnson said Tuesday that its revenue rose 4.2 percent and its profit soared 18 percent for all of 2014.
J&J released financial results for the year and the fourth quarter, both of which ended Dec. 31. The company said it had sales of $74.331 billion in 2014 compared to $71.312 billion in all of 2013. The full-year profit increased from $13.831 billion in 2013 to $16.323 billion in 2014.
The fourth quarter was more challenging for the company. Quarterly sales declined .6 percent and the profit fell 28.4 percent.
J&J's headquarters is in New Brunswick and it has multiple operations around Philadelphia. Among them is the McNeil Consumer Healthcare facility in Fort Washington, and the Animas and DePuySynthes medical device operations in Chester County.
The Fort Washington facility has been closed for production since March of 2010 after problems, including metal particles in liquid medicines, led to dozens of recalls. J&J said it has spent $100 million to fix the problems, but the target dates have come and gone. McNeil will need the approval of the U.S. Food and Drug Administration and then a federal judge before they can resume making medicine in Fort Washington.
Though McNeil primarily makes over-the-counter medicine for the domestic market, J&J shifted production to contractors or other company facilities around the world, even if though that meant shipping Tylenol and other medicine back to the United States.
J&J is among the big drugmakers trying to develop a vaccine to help stem the Ebola epidemic in West Africa, with the assumption that it will then be perhaps be sold in the rest of the world. Merck and GlaxoSmithKline are also working in that area.
"2014 was a strong year for Johnson & Johnson, as we delivered solid financial results while continuing to make investments to accelerate growth for the long term," J&J Chief Executive Officer Alex Gorsky said in a statement. "We have built significant momentum in our pharmaceutical business, are realizing the benefits of innovation, scale and breadth in our medical devices business and are continuing our market leadership with iconic brands in our consumer business.. I am proud of our exceptional Johnson & Johnson colleagues who make our success possible with their commitment to advancing health and well-being for patients and consumers around the world."
J&J, like Pfizer and Merck, is one of the 30 big U.S. companies on the Dow Jones Industrial Stock Index. J&J's stock closed Monday at $104.04, and its 52-week price range was $86.09 to $109.49. The stock price rise over the year and the results announced Tuesday probably will help Gorsky's personal finances.
According to the JNJ proxy statement filed with the Securities and Exchange Commission on March 12, 2014, Gorsky made $16,910,960 in total compensation for the 2013 fiscal year, which includes salary, incentive plan payouts and stock options. While many Americans have suffered from stagnant wages, Gorsky is not among them. The same proxy statement noted that his total compensation for 2012 was $10,977,109 and his 2011 pay was $6,836,860. Gorsky's total compensation for 2014 will eventually be filed with the SEC this spring.
The second and third-highest paid J&J executives might have more empathy for the stagnant-wage worker, at least compared to Gorsky. According to the proxy, CFO Dominic Caruso's total compensation increased only $223,478 in 2013 from his 2012 pay of $8,009,837. Paul Stoffels, worldwide chairman of the pharmaceuticals division, got a $485,077 bump from his 2012 pay of $7,336,924.