J&J's Costs Mount

Johnson & Johnson's manufacturing problems are going to take some time to fix. And they're going to cost the company more money.

J&J says it doesn't expect to produce any medicine out of a Fort Washington, Pennsylvania, plant this year. The factory is operated by J&J's McNeil division and makes over the counter children's medicines that are at the center of a giant recall. The plant, which makes popular brands like Tylenol, Motrin and Benadryl, shut down in April.

The site made products that generated $650 million a year. That may be a relatively small percentage of the almost $62 billion in sales J&J reported last year but still a significant number. Some analysts are cutting their sales and profit targets for the company this morning.

J&J's shares are down 7.5 percent this year (before U.S. markets open), which is more than the S&P 500's 3.7 percent dip. But some investors are sticking with the company. A poll in early May by the Street.com found that about 70 percent of respondents said the recalls won't hurt J&J's reputation or sales. "Investors seem to be taking the news in relative stride," according to the story "J&J Drug Recall Is a Minor Blip: Poll Says."

The Street.com wasn't alone in pooh-poohing the impact of J&J's troubles. Sanford Bernstein analyst Derrick Sung told Reuters last month that the recalls were a "relatively minor" event in terms of the overall hit to J&J. Other analysts made similar comments.

There's still the question of the long-term effects on J&J's business. Once the company fixes its manufacturing processes it will take some time to rebuild its brands.