Last 15 months Johnson & Johnson, a well-known American manufacturer of medical and hygiene products, has withdrawn 17 products from sale. The most famous recalled brands were Tylenol and Rolaids.
This state of affairs affected the company's reputation and had an immediate effect on profits, and the company incurred additional unforeseen expenses for legal costs and correction of identified problems. For the fourth quarter of 2010, the company's profit figures fell by 12%, while sales decreased by 5.5%. It is these events that are actively discussed at the quarterly meeting in the company.
Executive Director Johnson & Johnson William C. Weldon, in an attempt to improve the company's public image and convince analysts and investors, said that there would not be as many product recalls in subsequent periods, and perhaps the process would stop altogether. The company's plans to correct the situation are connected with the conquest of new, only emerging markets and with the development of new drugs.