JNJ Foreign Exchange Lament

Johnson and Johnson (JNJ) reported results and made much of foreign exchange issues. Q1 sales are down 7.2%. The negative impact of currency was 6.0%. International sales were down 9.6% and negative currency impact was 12.6%. Which means as their press release pointed out there was real growth of 3%. Which means as their press release did not point out that it is possible to achieve real growth. The press release did not discuss any substantive aspects of the real growth.

The press release also starts to beg the foreign exchange question. When currencies reverse as they will one day will JNJ revenues suddenly surge and hide a variety of operational difficulties.