Merck KGaA Q2 op result up 24% on liquid crystals
26 July 2006 10:27 [Source: ICIS news]
LONDON (ICIS news)--German chemicals to pharmaceuticals group Merck KGaA posted a 24.0% higher second quarter operating result on Wednesday at €252m ($317m) as profits from its liquid crystal business boomed.
The group, which earlier this year bid for Schering, booked a €398m capital gain in the quarter from the sale of its stake in the German drugs maker to Bayer in June.
Net profits more than doubled to €529m, from €248m. Earnings before interest and tax (EBIT) were up 90.7% at €649m including the Schering windfall.
At the operating level, the return on sales rose to 16.5% from 13.9% and the quarterly return on capital employed (ROCE) to 22.2% from 18.5%. Second quarter sales were 4.5% higher at €1.52bn.
Chemicals profits shot up 31% to €146m due to the liquid crystals performance on sales up 5.3% at €503m.
Liquid crystal division sales growth of 8.4% to €198m was lower than in the first quarter but “acceptable”, according to Merck. Division profits were 34% higher at €105m.
The group first half operating result was 34.6% higher at €540m on sales up 10.0% at €3.10bn. First half net profits were up 92.8% at €709m.
Merck said it expected to benefit in the second half from liquid crystal demand growth with its sales expansion matching the growth in display surface area.
The company also forecast higher sales from its anti-cancer drug Erbitux. Sales of the drug in the second quarter rose 56% to €81m following European Union approval for the drug in March 2006 for the treatment of head and neck cancer.
In the second quarter the pharmaceuticals operating results was up 10% at €120m on sales 4.4% higher at €1.01bn.
Generics profits were up 7.8% at €75m despite price pressure.
By: Nigel Davis
+44 20 8652 3214
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