27 April 2009 08:18 [Source: ICIS news]
SINGAPORE (ICIS news)--German specialty chemicals maker, Merck KGaA, posted a 76% year-on-year plunge in first-quarter net profit to €56.7m ($75m) due to a poorly performing chemicals business, the company said on Monday.
“The recession is affecting the company’s results, mainly in the Chemicals business sector,” it said in a statement.
Revenue from the company’s chemicals business fell 22% year on year to €436m while operating profit tumbled 79% to €37m.
Sales from its liquid crystals division fell 44% due to a “dramatic slowdown in the global liquid crystal panels business, both in price and volumes,” the company said.
However, Merck said it was expecting a more modest 20-30% decline in sales from its liquid crystal segment for the full year, as customers’ inventories appeared to be wearing down and volumes have increased month over month during the quarter.
Revenue from the Performance & Life Science Chemicals segment fell marginally to €305m, but it was expected to continue to remain under pressure due to the weakness in the global automotive industry.
Merck is expecting stable revenue from the business division for the year.
($1 = €0.76)
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