NEW BRUNSWICK, N.J. — Johnson & Johnson said Tuesday that its second-quarter net income fell by half due to lower sales and charges for litigation and other items. The maker of Band-Aids and prescription drugs, which has been struggling with a series of about three dozen product recalls over lapses in manufacturing quality, also lowered its 2012 profit forecast.
Johnson & Johnson said net income was $1.41 billion, or 50 cents per share, down from $2.78 billion, or $1 per share, a year earlier. Revenue fell by 0.7 percent to $16.48 billion.
Shares rose 55 cents to $69 on the New York Stock Exchange Tuesday.
Excluding one-time items, net income was $3.63 billion, or $1.30 per share. The items included asset writedowns, costs related to its recent $20 billion purchase of Swiss orthopedics device maker Synthes and a charge related to unfavorable currency exchange rates.
Analysts expected earnings per share of $1.29 on revenue of $16.71 billion.
J&J says it now expects 2012 earnings per share of $5 to $5.07 per share, down from its April forecast of $5.05 to $5.15 per share, excluding special items.
Goldman’s troubles continue in quarter
NEW YORK — Another tough quarter, another reminder for Goldman Sachs that it isn’t just its reputation that’s under attack.
The once-mighty investment bank’s revenue and earnings continue to decline even as it has resorted to massive job cuts and other steps to reduce costs in the past year.
On Tuesday, the New York bank said its net income in the April-through-June period fell 11 percent to $962 million, or $1.78 per share. That compares with $1.09 billion, or $1.85 per share, a year ago. The earnings were higher than the $1.17 per share that analysts were expecting, and Goldman’s stock edged up 19 cents, to $97.87.
Revenue fell 9 percent to $6.63 billion compared with the same period a year ago.
Goldman chief executive Lloyd Blankfein blamed the declines on market volatility, which was set off by instability in Europe’s financial system, and the global economic slowdown.
However, Goldman’s problems run deeper. The bank is struggling to navigate a world of stricter government controls that is drying up some of its most lucrative revenue streams. Regulations taking effect this year reduce Goldman’s ability to trade for its own account, which has previously been a big source of profits, especially when markets are unsettled.
At 4 p.m. on the New York Stock Exchange, Goldman stock rose 30 cents to $97.98 per share.
The shakiness in financial markets hurt Goldman’s core investment banking business. Goldman is a major adviser to large companies on making merger and acquisition deals and on underwriting stock and bond offerings. Many companies shied away from doing both in the second quarter.
Barclays analyst Roger Freeman wasn’t impressed with Goldman’s results. In a note to clients, Freeman advised investors to maintain a ‘‘wait and see’’ approach on the stock.
Intel’s earnings fall, amid headwinds
NEW YORK — Intel Corp., the world’s largest chipmaker, said Tuesday that the weak global economy is slowing its growth, and revenue for the current quarter is likely to come in below Wall Street forecasts.
Intel’s second-quarter net income was $2.83 billion, or 54 cents per share. That was down 4.3 percent from $2.95 billion, or 54 cents per share, a year earlier, as operating expenses rose faster than revenue. Intel has been buying back shares, accounting for the flat earnings per share. Shares rose 25 cents to $25.38 on the Nasdaq Tuesday.
Analysts were expecting earnings of 52 cents per share for the latest quarter.
Revenue rose 3.6 percent to $13.5 billion. Analysts were expecting $13.54 billion.
The Santa Clara, Calif., company says it expects $13.8 billion to $14.8 billion in third-quarter revenue, with a midpoint of $14.3 billion, below the analyst forecast of $14.6 billion.
‘‘As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment,’’ CEO Paul Otellini said in a statement.
After the release of results, Intel’s stock fell 8 cents to $25.30 in extended trading. During the regular session, it gained 25 cents, or 1 percent, to close at $25.38.