Merck Reports a Solid Q2

“Merck reported solid second-quarter results due to healthy demand in all our businesses, tight cost management, and favorable currency exchange rates,” said Karl-Ludwig Kley, Chairman of the Executive Board of Merck earlier today. “The financials show that we are making good progress in strengthening Merck for the future.”

Group revenues for Q2 were €2.852 billion, up 11.6% on the same time last year. Kley noted that all four of the Group’s divisions delivered sales growth and Q2 brings revenues for the first half of the year to €5.497 billion which is 7.4% up on the same period last year.

Merck Millipore is continuing successfully on its path to deliver profitable growth. The division’s second quarter 2012 sales rose 11% to € 649 million compared to € 583 million in the
year-ago period,  reflecting organic growth of 3.2%, a 6.0% benefit from positive currency exchange rates and a 2.2% boost from acquisitions. All three of the divisions business units contributed to the organic sales growth, especially Lab Solutions and Process Solutions. Geographically, Emerging Markets was the growth driver for the organic sales increase. Merck Millipore’s EBITDA pre for the second quarter of 2012 improved by 15% to € 148 million, or 22.8% of sales, compared to € 129 million, or 22.1% of sales, in the year-ago quarter. The higher margin was due to a marked improvement in the division’s gross margin.

Millipore is the second largest of Merck’s divisions representing 24% of Group revenues. Merck Millipore offers a broad spectrum of proven tools and technologies, together with solutions dedicated to the research, development and production of biotechnology and pharmaceutical drug therapies. The largest division is Merck Serono which discovers, develops, manufactures and markets innovative prescription medicines and represents 56% of the Group. In its Consumer Health Care division, representing 4% of Group revenue, the Merck sells therapeutic pharmaceutical products. 15% of Group revenue is derived from the Performance Materials division consisting of products such as liquid crystals mixtures for televisions and pigments for automotive coatings and cosmetics.

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