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Merck KGaA lifts FY profit forecast on strong lab supplies
[FRANKFURT] German drugs and chemicals maker Merck KGaA on Thursday lifted its full-year earnings outlook after strong growth at its lab supplies business boosted second-quarter results.
Merck raised its forecast for earnings before interest, taxes, depreciation and amortisation (Ebitda) before special items to 4.25-4.4 billion euro (S$6.4-S$6.6 billion) for 2016, up from a previous target range of 4.1-4.3 billion.
Merck's Life Science business, which supplies everything from ultra-pure lab water to cell lines and bioreactors that produce pharmaceutical proteins, grew currency-adjusted sales 8.1 per cent in the second quarter, above overall market growth of 4-5 per cent.
In addition, it was boosted by the takeover of Sigma-Aldrich last year.
Second-quarter adjusted Ebitda for the group, which also makes drugs and high-tech chemicals for display screens, rose 29 per cent to 1.16 billion euros, slightly above the average estimate of 1.1 billion euros by analysts in a Reuters poll.