Merck posts 49% rise in Q1 op result

23 April 2008 12:37  [Source: ICIS news]

MUMBAI (ICIS news)--Merck KGaA posted a 49% rise in its operating result for the first quarter of 2008 to €360m ($571.4m) on strong performance in all four of its divisions, the German chemicals and pharmaceuticals firm said on Wednesday.

“Our first-quarter results are a good example of how we think profitable growth should look - with profit growing faster than revenues,” chairman, Karl-Ludwig Kley, said.

The company’s revenues in the first quarter rose 8.3% to €1.86bn. For the period, Merck posted a net profit after minorities of €239m, as against a net loss after minorities of €8.3m in the year-ago period. The earlier quarter loss was taken as the company acquired biopharmaceuticals firm Serono.

Currency effects had a considerable negative impact on total revenues in the current quarter, Merck said.

In the Merck Serono division, the first quarter operating result more than doubled to €181m from €89m in the year-ago quarter due to higher revenues and gross margin, as well as lower integration costs. The segment's revenues were €1.18bn, up 9.7% from the year-ago period. 

In the first quarter, revenue for the consumer health care division rose 9.9% to €111m, compared to the year-ago quarter, driven by performance in Europe and the division’s focus on strategic brands, the company said.

For the period, the liquid crystal division’s operating result rose 5.6%, year-on-year to €119m and its revenue increased 13% to €234m, it added.

Total revenues for the performance & life science chemicals division rose slightly in the first quarter to €325m compared to € 323m in the year-ago quarter.

The company said that it continues to expect its total revenues to increase in a range between 5% and 9%.

“Revenue growth in the liquid crystals division should be between 5% and 10%. For the Merck Serono division, revenue growth should be in the range of 7% to 11%,” the company added.

($1= €0.63)

By: Isha Jha
+65 6780 4359

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