Takeaway Message: In 2024, look for DePuy-Synthes to spin out poor divisions and/or product lines and to acquire brand new companies. DePuy-Synthes has $13B to play with after sale of its consumer health business, Kenvue.
The company announced the two-year restructuring in its third-quarter earnings call. It expects the changes to accelerate growth and enhance profitability, CFO Joe Wolk said.
Orthopaedics restructuring
Johnson & Johnson announced it will restructure its orthopedics business, with plans to exit less profitable markets and product lines, CFO Joe Wolk said during the company’s third-quarter earnings call on Tuesday. The changes are intended to improve the growth and profitability of the segment, Wolk said.
The two-year restructuring program is expected to cost between $700 million and $800 million, including $235 million in costs during the third quarter from inventory write-downs. J&J reported $2.16 billion in sales from orthopedics, a 3.4% increase year-over-year, in the third quarter.
“We are in a journey of improvement in orthopedics. We want to be number one and number two in every segment [where] we compete,” CEO Joaquin Duato told investors.
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