Investor Relations

Bill Weldon CEO of Johnson and Johnson

Johnson and Johnson includes a section on the website for investor relations. The annual report can be found under this tab. When I clicked on 2009 annual report, I was shocked to see a vibrant picture of a family covering most of the screen. There weren't endless amounts of numbers taking over the screen but a clean slick homepage for the 2009 annual report. The top of the page contains tabs labeled Chairman's letter, consumer, citizenship, financial results, shareholder information, etc. I like the clean easy-to-read layout. J & J put effort into posting these results. It makes me want to visit the site because it is easy to find and easy to read. I feel like JNJ takes pride in investor relations because of the fancy layout. 


The goal of the annual report is an opportunity to tell the JNJ story more. Each tab under the investor relations area on the site consists of paragraphs of information about the company and how well it is doing to serve the community. For example, underfinancial results there is information about corporate governance and management responsibility. This section starts off by saying, "Johnson & Johnson is guided by the values set forth in Our Credo, created by General Robert Wood Johnson in 1943. These principles have guided us over the years and continue to set the tone of integrity for the entire Company." J & J informs readers with more information about the company and what it is about. 

The latest letter to the shareholders is written by CEO William C. Weldon. The CEO puts a spin on the bad news he is trying to convey. He blames financial troubles on the "most severe global economic downturn many of us have ever experienced" and "increased competition across our markets." His flowering wording makes the audience feel like JNJ is a powerful company and will never fail you. He says despite all of these hardships, JNJ keeps a strong grasp on the company credo and stays inspired. He concludes with an uplifting farewell, "More than ever, we know that caring for the health and well-being of people is not only an outstanding business but a mission that truly touches lives." Weldon is sending a positive message to readers. He wants everyone to stay with the company through thick and thin. He urges people to never give up in his letter. I get the impression he is a powerful determined man. Investors would most likely feel the same way if not more if they invest money with this company. Investors can come to this site and easily access this letter from the CEO. The fact that Weldon's picture is adjacent to the letter makes the letter more personal. It puts a face to the wording. The overall tone is a bit of concern and a bit motivational. Weldon expresses concern with the first statement, "As I reflect on the year that just passed, and the decades since the founding of Johnson & Johnson in 1886, I can say without hesitation that the year 2009 was one of the most challenging in our history. " He warns readers and gives the bad news first. Throughout the rest of the letter. he takes a turn to say JNJ will "continue to pursue long-term growth opportunities." I have no doubt in my mind that this information is credible. As I am reading the words from Weldon, I want to believe everything he says because it it worded so beautifully. It is easy to read and send a positive motivational message. 

The latest JNJ news release is not as easy on the eyes as the letter to shareholders. Dated October 19. 2010, the article features JNJ's 2010 third quarter reports. It announces a decrease in sales of 0.7%. International sales increased but domestic sales decreased. Weldon sounds credible giving his opinion on the company, "“Our second-quarter results include strong growth in a number of our recently launched products which contributed to solid earnings.” He focuses on the positive rather than the negative. He stresses company action and growth. I see him as a go getter highly involved in the company. This instills confidence in investors because the people need leader to keep everyone on track. When times get tough, it is the leaders job to get into the minds of the employees to keep the ball rolling with company success. The hardships JNJ is facing puts everyone in a gloomy mood. CEO Weldon successfully attempts to motivate the crowd and to encourage investors. The release constantly mentions a decrease in sales here and a decrease in sales there. This is not good news for JNJ. The reason for the decrease in sales has to do with the recall of medicines. Although the release brings bad news, there is no mention of negative opinion. The facts are clearly stated for the investors to read. It is not good news but there are no opinions interjected. I think if someone were to comment about the decrease in sales in the release, then the announcement would take a turn for the worst. The only comment bout the announcement comes from the CEO. He does a great job in keeping investor spirits high.