FRANKFURT (Reuters) -Germany’s Merck KGaA on Thursday raised its full-year operating earnings guidance, excluding the effect of harsh foreign exchange headwinds, citing a strong performance at its pharmaceuticals and lab equipment businesses.
In a statement, Merck predicted organic growth in earnings before interest, tax, depreciation and amortisation, adjusted for one-off items, of 4% to 8%, where it had previously seen a range between 2% and 7%. Cost cuts were also a driver, it added.
Hit by a weak U.S. dollar that is weighing on the value of Merck’s overseas revenues, second-quarter adjusted EBITDA slipped 3% to 1.46 billion euros ($1.70 billion), below an analyst consensus of 1.52 billion posted on the company’s website.
The company, also a maker of materials for semiconductor manufacturing, narrowed its guidance range for organic sales growth to 2% to 5%, where it had previously seen a gain of 2% to 6%.
Merck in April struck a deal to buy U.S. biotech company SpringWorks Therapeutics for $3.9 billion to add rare cancer therapies ahead of expected revenue losses linked to expiring drug patents.
($1 = 0.8568 euros)
(Reporting by Ludwig Burger, editing by Kirsti Knolle)
