J&J Profits Drop Despite Higher Revenues

New Brunswick, NJ-based Johnson & Johnson reported that fourth-quarter profits took a 34% tumble because of tax charges despite increased sales of its medical devices, diagnostics and drug divisions.

Profits dropped to $1.22 billion compared with $1.85 billion a year ago after an $800 million tax-related charge on overseas profits returned to the U.S.

Johnson & Johnson announced that revenues increased for the quarter to $12.75 billion, compared with $11.25 from 2003 billion. All three of the company’s major divisions recorded double-digit sales gains including 12% for medical devices and diagnostics.