14.11.2015, 01:03
Merck Reports Jump in Earnings in Q3 2015
OREANDA-NEWS. Merck, a leading science and technology company, reported sales growth of 6.8% in the third quarter of 2015. EBITDA pre exceptionals rose sharply by 10.2%.
"Our organic growth in all three business sectors and all regions shows that our strategy is bearing fruit. We are also well-positioned for future growth," said Karl-Ludwig Kley, Chairman of the Merck Executive Board. "The fact that we are lifting the forecast for the current full year is due to the good operational performance of our businesses as well as to the imminent acquisition of Sigma-Aldrich."
Group sales rose in the third quarter of 2015 by 6.8% to EUR 3.1 billion (Q3 2014: EUR 2.9 billion). Organic sales growth amounted to 3.3% while positive currency effects increased sales by 3.5%. From a geographic perspective, the Asia-Pacific region was the growth engine of the Group with strong organic growth and significantly positive currency effects.
The 10.2% jump in EBITDA pre exceptionals, Merck's key performance indicator, to EUR 944 million (Q3 2014: EUR 857 million), was primarily driven by good operating performance in the third quarter. Lower research and development costs were due among other things to the release of provisions that had been set up in the second half of 2014 for the discontinuation of clinical development programs. This contrasted with higher marketing and selling expenses in the third quarter of 2015 that were incurred in connection with the investments in company growth initiatives.
Group EBIT rose sharply by 31.4% to EUR 564 million (Q3 2014: EUR 429 million). Net income soared by 46.3% to EUR 364 million (Q3 2014: EUR 249 million). Earnings per share pre exceptionals rose in the third quarter of 2015 by 14.8% to EUR 1.32 (Q3 2014: EUR 1.15).
As of September 30, 2015, Merck had built up net financial position of EUR 1.3 billion. Net financial debt will soon increase considerably as a result of the acquisition of Sigma-Aldrich. Merck had 40,339employees worldwide on September 30, 2015.
"Our organic growth in all three business sectors and all regions shows that our strategy is bearing fruit. We are also well-positioned for future growth," said Karl-Ludwig Kley, Chairman of the Merck Executive Board. "The fact that we are lifting the forecast for the current full year is due to the good operational performance of our businesses as well as to the imminent acquisition of Sigma-Aldrich."
Group sales rose in the third quarter of 2015 by 6.8% to EUR 3.1 billion (Q3 2014: EUR 2.9 billion). Organic sales growth amounted to 3.3% while positive currency effects increased sales by 3.5%. From a geographic perspective, the Asia-Pacific region was the growth engine of the Group with strong organic growth and significantly positive currency effects.
The 10.2% jump in EBITDA pre exceptionals, Merck's key performance indicator, to EUR 944 million (Q3 2014: EUR 857 million), was primarily driven by good operating performance in the third quarter. Lower research and development costs were due among other things to the release of provisions that had been set up in the second half of 2014 for the discontinuation of clinical development programs. This contrasted with higher marketing and selling expenses in the third quarter of 2015 that were incurred in connection with the investments in company growth initiatives.
Group EBIT rose sharply by 31.4% to EUR 564 million (Q3 2014: EUR 429 million). Net income soared by 46.3% to EUR 364 million (Q3 2014: EUR 249 million). Earnings per share pre exceptionals rose in the third quarter of 2015 by 14.8% to EUR 1.32 (Q3 2014: EUR 1.15).
As of September 30, 2015, Merck had built up net financial position of EUR 1.3 billion. Net financial debt will soon increase considerably as a result of the acquisition of Sigma-Aldrich. Merck had 40,339employees worldwide on September 30, 2015.
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