Merck Gets Boost from Emerging Markets

Merck Gets Boost from Emerging Markets

The company said it expects markets for 'innovative biopharmaceuticals and over-the-counter preparations to grow, driven by volume growth in the emerging markets.'

Chemicals and pharmaceuticals group Merck KGaA (IW 1000/312) raised Tuesday its forecasts for full-year revenues on expected growth in emerging markets after trimming its losses in the second quarter.

Shares soared by more than 4% after the group said net losses in the second three months of the year came in at 60.5 million euros (US$74.9 million) compared to 86.8 million euros (US$107 million) in the same period last year.

Total group revenues were up 11.6% to 2.9 billion euros (US$3.6 billion) with operating profits, as measured by earnings before interest, tax, depreciation and amortization (EBITDA), up 13% to 747 million euros (US$ 923 million).

"Merck reported solid second-quarter results due to healthy demand in all our businesses, tight cost management, and favorable currency exchange rates," said Merck boss Karl-Ludwig Kley.

"The company expects markets for innovative biopharmaceuticals and over-the-counter preparations to grow, driven by volume growth in the emerging markets," the firm added.

It said it was counting on total revenues in 2012 of 10.7 billion euros, compared to earlier guidance of 10.5 billion euros (US$13 billion).

Copyright Agence France-Presse, 2012

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