Merck’s laboratory and semiconductor businesses remain weak

Continued weak activities in the laboratory division and in semiconductor materials destroyed another quarter for Darmstadt-based Merck Group. Negative currency effects also had a negative effect.

The pharmaceutical sector was strong again from July to September. However, group-wide turnover fell by almost eleven percent to 5.17 billion euros compared to the previous year, the DAX company announced on Thursday. Because the share of profitable products in turnover fell at the same time, operating profit adjusted for special effects fell by a fifth to almost 1.45 billion euros.

The pharmaceutical and specialty chemical group performed slightly below analysts’ revenue expectations, but earned more than expected. The bottom line is that profits fell to 740 million euros, compared to 926 million a year earlier.

The management around CEO Belen Garijo expects a decline in turnover and profit this year and has now specified the objectives that were already set in the summer. Turnover should be slightly below the average of 20.5 to 21.9 billion euros.

Adjusted operating profit is expected in the lower half of the range of 5.8 to 6.4 billion euros. Merck wants to return to organic growth next year, management confirms. (sda/awp/dpa)