Johnson & Johnson Proves A Safe Investment

Johnson & Johnson (JNJ) reported a 30% rise in quarterly profit to beat analyst estimates, helped by a sharp increase in international sales. In the third quarter, net income was $3.31 billion, or $1.17 a share. The drugmaker also tried to assure investors by boosting its 2008 outlook and saying its financial position was healthy despite the ongoing credit crisis.

Johnson & Johnson claimed that the global economic downturn, including credit default swaps and bank failures, will not hurt its sales. For the full year, the New Brunswick, New Jersey-based company now sees earnings of $4.50 to $4.53 a share, up from its previous guidance of $4.45 to $4.50 a share.

While revenue generated from prescription drugs were flat due to generic pressure on schizophrenia drug Risperdal, the consumer products unit that makes Zyrtec allergy pills, Listerine mouthwash and diabetes test-strips, offset the effect. Johnson & Johnson, which is now seen as a safe haven for investors in a turbulent market, gained nearly 3% to trade at $64.14 in the afternoon session.

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