Merck KGaA sees 'significant' profit increase in 2013, 2014

7th March 2013, Comments 0 comments

German chemicals and pharmaceuticals group Merck KGaA said on Thursday it is pencilling in a "significant" increase in net profit this year and next year after one-off charges hit its bottom line in 2012.

"With one-time costs peaking in 2012, this should lead to a significant increase in net income in 2013 and 2014," Merck said in a statement.

Group net profit fell by 6.6 percent to 566.7 million euros ($736 million) in 2012.

That was largely due to 664 million euros in one-off items, including 504 million euros in restructuring charges, Merck explained.

Underlying profit, as measured by earnings before interest, tax, depreciation and amortisation (EBITDA), was up 8.9 percent at 2.965 billion euros on an 8.7-percent increase in sales to 11.173 billion euros.

"In 2012, Merck continued successfully down ... one of the most extensive restructuring programmes in the history of the company and we also succeeded in further expanding our business in a challenging economic environment," said chief executive Karl-Ludwig Kley.

In September, the group announced it was to cut one job out of every 10 in Germany over the next three years as part of a global cost-cutting drive.

The outlook for sales was positive, with revenues "expected to grow organically at a moderate pace in both 2013 and 2014," Merck said.

© 2013 AFP

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