Johnson & Johnson Struggles with Vision Care

"Johnson & Johnson Vision Care Inc. is one of Jacksonville’s biggest companies, with about 2,000 local employees and annual sales of nearly $3 billion," notes the Jacksonville Daily Record. "But the Jacksonville-based contact lens maker usually registers just a blip on Johnson & Johnson’s quarterly earnings report. However, when the health products giant reported second-quarter earnings last week, a Johnson & Johnson executive took time to discuss Vision Care’s outlook in great detail after several quarters of declining sales. The company continues to lead the global market with its Acuvue brand of contact lenses, but sales in the second quarter dropped by 8.6 percent to $646 million, continuing a downward trend. That was partly due to currency impacts on international sales, but U.S. sales fell 7.3 percent.

“'It’s no secret that we faced capacity and portfolio issues in Vision Care in 2012 and 2013,' Group Worldwide Chairman Sandi Peterson said in Johnson & Johnson’s conference call with analysts last week. 'At the same time, competition intensified and consumer preferences shifted. The market structure has evolved in response, driving increased emphasis on e-commerce and increased price competition between channels,' she said. Because of the market changes, Johnson & Johnson last fall reset its contact lens pricing 'to bring more value to consumers in close partnership with eye care professionals,' Peterson said." Read more.