TRENTON, New Jersey (AP) — The pain of the recession is easing a bit for Tylenol and Band-Aid maker Johnson & Johnson, which yesterday reported a healthy jump in fourth-quarter sales and gave a fairly upbeat forecast for this year.

But profit for the just-ended quarter was down due to a whopping charge — $1.1 billion before taxes — for its biggest restructuring ever, a programme that will eliminate up to 8,000 jobs, or nearly seven percent of the work force.

The world's largest maker of health care products said sales rose nine percent to $16.55 billion, but profit dropped 19 percent to $2.21 billion, or 79 cents per share. Excluding one-time items, the company reported earnings per share of $1.02.

Analysts polled by Thomson Reuters on average were expecting revenue of $15.7 billion and earnings per share of 97 cents, excluding items.

Despite beating that forecast, its shares fell 55 cents to $62.67 in morning trading.

Sales had fallen over the prior year as the recession pushed penny-pitching consumers to buy cheaper store brands instead of J&J bandages and non-prescription medicines. Meanwhile, sales of some of its blockbuster prescription drugs have been slashed by generic competition, and a drop in elective surgical procedures at hospitals had been cutting into sales of medical devices.

Chief executive Bill Weldon told analysts on a conference call that the company's results were "impressive" given "a soft economy and the rise of private-label brands" worldwide, plus the loss of $3 billion in sales due to generic competition.