The international chemical and pharmaceutical company Merck KgaA reported a 13.7% drop in profit for the second quarter of the year. The decline is mainly due to the lower liquid crystal receipts used in the production of flat screens, as well as the strong Euro, which weighs on international sales.
Between April and June, the manufacturer posted a revised profit of 920 million EUR before interest, taxes, depreciation and amortization (EBITDA). The amount is slightly below the expectations of experts for 960 million EUR.
Merck also said they expect a revised EBITDA from continuing activity to fall to 3.75-4.00 billion EURin 2018. The company also renounces its consumer healthcare unit, which will be sold to Procter & Gamble for the amount of 3.4 billion EUR.
By comparison, in 2017, the adjusted EBITDA from day-to-day operations amounted to 4.25 billion EUR excluding consumer healthcare.
In the words of Chief Financial Officer Marcus Kuhnert, in the second three months of the year there is a weakening currency pressure as compared to the first quarter.
“We will return to revenue growth to 2020”, added he.
Merck Group, branded and commonly known as Merck, is a German multinational pharmaceutical, chemical and life sciences company headquartered in Darmstadt, with around 50,000 employees in around 70 countries. Merck was founded in 1668 and is the world’s oldest operating chemical and pharmaceutical company, as well as one of the largest pharmaceutical companies in the world.