Merck profits rise but earnings hit by acquisition

24 October 2007 09:02  [Source: ICIS news]

SINGAPORE (ICIS news)--Merck posted a 56% year-on-year rise in third-quarter operating profits to €291.5m ($416.4m) but registered a 29% fall in earnings before interest and tax on exceptional items due to the acquisition of Serono, it said on Wednesday.

 

Operating profits rose mainly due to the strong performance of its cancer drug Erbitux and in its liquid crystals division, said the German pharmaceuticals and fine chemicals company.

 

“Merck’s solid results so far this year confirm our strategy to focus on innovative pharmaceuticals and chemicals,” Merck chairman Dr Karl-Ludwig Kley said.

 

“We continue to expect an increase of more than 20% for the full-year operating result,” he added.

 

Third-quarter operating profits for Merck’s pharmaceuticals business more than doubled to hit €161m, which was largely due to contributions from recent acquisition Serono, the company said.

 

The company’s chemical business division saw operating profits rise 8.2% year on year to €148m, it added.

 

The liquid crystal division’s operating profits rose 14% to €119m, reflecting the development of the market in liquid crystal displays (LCDs), Merck said.

 

Its performance and life sciences business posted a 12% drop in operating profits to €29m, on the back of restructuring costs in Switzerland and the US, it added.

 

($1 = €0.70)

 

By: Joyce Khoo
+65 6780 4359

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