Johnson & Johnson (JNJ) cut its 2022 forecast for the second quarter this year amid a stronger U.S. dollar and falling euro.
CFO Joe Wolk told Yahoo Finance Tuesday that the cut in outlook was "purely translational."
He added that there is "some noise in our PnL, but that's not a dramatic impact in terms of our results."
The company first cut its outlook for the year citing exchange rates in April, at the end of the first quarter, and has the euro to blame this time around — as it is a large multinational corporation.
The company now expects $10 to $10.10 per share this year, down from the earlier forecast of $10.15 to $10.35 per share.
The company's pharmaceutical unit saw the largest increase in sales, compared to slight declines in medical devices and its soon-to-be-spun-out consumer unit. Supply chain constraints have also impacted the company's consumer unit. Meanwhile, its COVID-19 vaccine is tapering production globally, even as sales helped to buffer losses from competition in the pharmaceutical unit.
As the company faces currency headwinds, it's also dealing with ongoing talc powder and opioids lawsuits, plus competition increasing for some products. The consumer products that faced steep shortages at the end of last year are starting to find their way back to the shelves, in particular, in the beauty and health space, Wolk said.
But the foreign exchange woes will continue to play out for the company through the end of the year — even as the company expects a stronger fourth quarter.
"We can control what we can control, and we will let the financial markets do what they may. We will continue to monitor it. I don't know that there's much we can do to influence it," Wolk said of the euro's fall.
He noted that the dollar weakening a bit Tuesday morning would bode well for the company, as it would for any multi-national corporation.
"That will be good for Johnson & Johnson as it would for any multinational company that has significant sales outside the U.S.," Wolk said.
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