Merck KGaA: Q2/2010: Profit After Tax Jumps 70% to EUR 187 Million - Merck Raises Group Outlook 2010

Merck KGaA / Half Year Results/Change in Forecast

29.07.2010 07:00

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Darmstadt, July 29, 2010 - Merck Group total revenues rose 16% in the
second quarter 2010 to a record of EUR 2,208 million from EUR 1,910 million
in the year-ago quarter. Thus, with improved revenues and an improved gross
margin, the operating result jumped 77% in the second quarter to EUR 326
million from EUR 184 million in the year-ago quarter. Profit after tax in
the second quarter of 2010 increased by 70% to EUR 187 million from EUR 110
million in the second quarter of 2009.

Key Figures Q2:


Merck Group (EUR Million)               Q2/2010      Q2/2009      (+/- %)
Total Revenues                          2,208.0      1,909.7         15.6
Operating Result                          326.2        184.5         76.8
Exceptionals                               -1.2           --           --
EBIT                                      325.0        184.5         76.2
Profit After Tax                          186.9        109.9         70.1
Net Profit*                               183.4        108.5         69.1
EPS (EUR)                                  0.84         0.50         69.1
Core EPS (EUR)**                           1.44         1.10         31.1




* Net Profit after non-controlling interests.

** EPS excluding amortization of intangible assets and related tax effects
for Merck Serono.

Key Figures 1-6:


Merck Group (EUR Million)              1-6/2010      1-6/2009      (+/- %)
Total Revenues                          4,306.9       3,768.2         14.3
Operating Result                          621.0         382.6         62.3
Exceptionals                               -1.2         -68.8        -98.3
EBIT                                      619.8         313.8         97.5
Profit After Tax                          381.5         170.1        124.3
Net Profit*                               374.8         165.1        127.0
EPS (EUR)                                  1.72          0.76        127.0
Core EPS (EUR)**                           2.88          2.24         28.6




* Net Profit after non-controlling interests.

** EPS excluding amortization of intangible assets and related tax effects
for Merck Serono.

Merck Raises Group Outlook 2010 

The Merck Group's total revenues and operating result developed very
positively during the first six months of the year and there is every
indication that the second half of 2010 will surpass the first half. The
Chemicals business performed on a high level in the second quarter and this
trend should continue through the year.  Therefore, the full-year guidance
for the Merck Group as it would be without Millipore is as follows:

Merck Group forecast for 2010 excluding Millipore


             Growth in     Growth in total   Growth in      Growth in
             total         revenues From     operating      operating
             revenues New  Q1                result New     result From Q1
     
Merck               7.5%              2-5%            60%          30-40%
Serono
Merck                                                 12%           0-10%
Serono,
Core*
Consumer              5%             5-10%           -20%          -10-0%
Health Care
Liquid               50%            15-20%           160%          60-70%
Crystals
Performance          15%              3-8%           100%          15-20%
& Life
Science
Corporate                                            -22%
and Other
Merck              12.5%              3-7%            95%          30-40%
Group**
Merck Group,                                          40%           5-15%
Core*




* Excludes Serono-related amortization of intangible assets.

** Includes actual Millipore transaction and integration costs of EUR 32
million during the first half of 2010.

With the July 14 acquisition of Millipore, Merck's outlook naturally
changes.

 

Merck Group forecast for 2010 including Millipore


                       Growth in total revenues  Growth in operating result
Merck Group***                             21%                         90%
Merck Group, Core****                                                  55%




*** Includes estimated Millipore-related transaction and integration costs
of EUR 58 million during 2010.

**** Excludes Serono-related amortization of intangible assets and
Millipore-related write-offs of step-up inventories and amortization of
intangible assets from the purchase price allocation, as well as
transaction and integration costs.


29.07.2010 Ad hoc announcement, Financial News and Press Release
distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Merck KGaA
              Frankfurter Str. 250
              64293 Darmstadt
              Deutschland
Phone:        +49 (0)6151 72 - 3321
Fax:          +49 (0)6151 72 - 913321
E-mail:       investor.relations@merck.de
Internet:     www.merck.de
ISIN:         DE0006599905
WKN:          659990
Indices:      DAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Hannover, Stuttgart, Hamburg;
              Terminbörse EUREX; Foreign Exchange(s) London, SIX
 
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