Good growth in the Pharmaceuticals business sector
The Pharmaceuticals business sector, comprising the two divisions Merck Serono and Consumer Health Care, increased total revenues by 7.1% to EUR 6,225 million in 2010. Total revenues in- creased by 7.6% in the Merck Serono division and by 1.1% in the Consumer Health Care division.
Pharmaceuticals | Total revenues by division
The Pharmaceuticals business sector increased its operating result as well. This figure rose by 44% to EUR 579 million. This was due exclusively to the development of the Merck Serono division (+59%). The operating result of the Consumer Health Care division was 71% lower than in 2009 (more information can be found on page 62).
The Pharmaceuticals business sector generated 67% of total revenues and 48% of the operating result of the Merck Group (excluding Corporate and Other). Return on sales increased from 6.9% to 9.3%.
Pharmaceuticals | Operating result by division
Chemicals business sector posts revenue growth of nearly 60%
The Chemicals business sector, comprising the two divisions Merck Millipore and Performance Materials, markedly increased total revenues by 58% to EUR 3,065 million. Both divisions performed very well, with total revenues increasing by 81% for Merck Millipore and by 38% for Performance Materials. However, for the Merck Millipore division, it should be noted that the Millipore companies have only been consolidated since July 2010 and were therefore only included in the financial statements for half a year. Organically, meaning adjusted for acquisition and currency effects, total revenues of the Chemicals business sector increased by 17%.
Chemicals | Total revenues by division
The operating result of the Chemicals business sector increased by 92% to EUR 624 million, despite expenses such as the costs of the Millipore integration (EUR 87 million), the one-time inventory step-up within the scope of the Millipore purchase price allocation (EUR 86 million) as well as the amortization of intangible assets (EUR 96 million). Due to the aforementioned one-time expenses in 2010, the operating result of the Merck Millipore division declined by 59%. The significant rise of 166% in the operating result of the Performance Materials division was derived from the Liquid Crystals and Pigments business units.
Chemicals | Operating result by division
The Chemicals business sector generated 33% of total revenues and 52% of the operating result of the Merck Group (excluding Corporate and Other). Return on sales increased from 16.8% to 20.4%.