Merck KgaA 1Q Earnings Hit by Lower Covid-19 Demand, Decline at Display Solutions

   By Cecilia Butini 
 

Merck KgaA on Thursday posted lower earnings for the first quarter, which it attributed to a decline in its Display Solutions business and to a decrease in earnings contributions from Covid-19-related sales.

The German health-care and technology company posted after-tax profit of 800 million euros ($878.6 million), on sales that rose to EUR5.29 billion from EUR5.20 billion the year prior.

Earnings before interest, taxes, depreciation and amortization dropped to EUR1.49 billion from EUR1.60 billion the previous year, Merck said.

Earnings per share fell to EUR1.83 from EUR2.02 the previous year. Ebitda pre, a closely-watched metric, declined to EUR1.59 billion from EUR1.63 billion in the comparable quarter of the previous year, the company said.

Demand for Covid-19-related products fell in the quarter, affecting earnings, though growth in the core business of the Life Science arm compensated the decline at the divisional level, said Merck.

The company specified its guidance for the full year. It expects net sales of between EUR21.2 billion and EUR22.7 billion, and Ebitda pre in the range of EUR6.1 billion to EUR6.7 billion.

"Negative impacts are likely from declining Covid-19-related sales, the slowing Display Solutions business and an even more pronounced weakening of the semiconductor materials market," the company said.

Write to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

May 11, 2023 01:31 ET (05:31 GMT)

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