U.S. sales of Johnson & Johnson's nonprescription medicines plunged 40 percent in the third quarter as an embarrassing string of product recalls hurt sales and consumer trust. That, combined with the lingering global recession and some initial price cuts from the health care overhaul, contributed to anemic earnings for the health care giant.

The maker of baby shampoo, contraceptives and biologic drugs on Tuesday reported a 2 percent increase in profit for the quarter that ended Sept. 30, but that was due to a $196 million jump in other income from divestitures and a lower tax bill.

Third-quarter net income edged up to $3.42 billion, or $1.23 per share, beating analysts' expectations of $1.15 per share. A year earlier, net income was $3.35 billion, or $1.20 per share.

The revenue picture, however, was very bleak for the world's biggest maker of health care products.