How did Merck explain the fall in their net profit?
German drug and chemical maker Merck KGaA said Friday its second quarter net profit fell 48 percent as higher research costs and one-time effects from the acquisition of Serono weighed on the bottom line. The Darmstadt-based company reported a net profit of euro108 million ($153 million) in the April-June period compared with euro207 million a year earlier. Sales for the quarter were nearly unchanged at euro1.9 billion. The company changed guidance slightly on some of its business units, but reiterated its previous overall guidance of 2009 group revenues remaining steady or rising up to five percent. The group’s return on sales is expected at between 15 percent and 20 percent for the year. “It is clear to see that the world remains in the midst of the economic crisis,” Karl Ludwig Kley, the company’s chief executive said. “Merck is also feeling its effects but to a lesser extent than many companies. … We are able to continue investing in the development of innovative products that wi
