For 2011 and 2012, the Executive Board assumes that the sales and the operating result of the Merck Group will show growth. Overall, we expect business developments to be good, however we cannot rule out setbacks due to economic cycles in individual countries, also as a result of high national debt levels.
Deviations of actual business developments from previously reported forecasts
The deviations of actual business developments from the guidance given for 2010 are as follows, broken down by division and for the Group as a whole:
| XLS |
|
Deviations |
Forecast 2010 |
adjusted actual values 2010* | ||
| ||||
|
Total revenues growth* |
|
| ||
|
Merck Group |
3% – 7% |
12% | ||
|
Merck Serono |
2% – 5% |
8% | ||
|
Consumer Health Care |
5% – 10% |
1% | ||
|
Liquid Crystals* |
5% – 10% |
38% | ||
|
Performance & Life Science Chemicals* |
3% – 8% |
17% | ||
|
|
|
| ||
|
Operating result growth* |
|
| ||
|
Merck Group |
20% – 30% |
88% | ||
|
Merck Serono |
30% – 40% |
59% | ||
|
Consumer Health Care |
–10% – 0% |
–71% | ||
|
Liquid Crystals* |
15% – 25% |
132% | ||
|
Performance & Life Science Chemicals* |
15% – 20% |
111% | ||
Owing to the acquisition of Millipore, a new segment structure was adopted for the Chemicals business sector in 2010. Therefore, the 2010 results are compared to the 2010 forecast based on the former segment structure. The acquired Millipore business was excluded from the actual values. All 2010 actual values for Liquid Crystals, Performance & Life Science Chemicals and the Merck Group have therefore been adjusted.
In an improving economic environment, Merck overall exceeded the guidance provided for 2010.
In the Annual Report for 2009, we forecasted for 2010 an increase in total Group revenues ranging between 3% and 7%. Total revenues increased by 12% to EUR 8,650 million. The operating result rose by 88% to a total of EUR 1,222 million. In our forecast, we predicted growth of between 20% and 30%.
For the Merck Serono division, we predicted an increase in total revenues of between 2% and 5%. In 2010, Merck Serono actually increased its total revenues by 8% to EUR 5,754 million. We had expected the operating result to increase by 30% to 40%, but instead it increased by 59%, rising to EUR 565 million. Better business developments as well as more favorable exchange rate developments contributed to this growth. On the cost side, we took steps to manage our marketing and selling as well as our research and development expenses more efficiently.
Sales of the Consumer Health Care division were expected to rise between 5% and 10%, but instead only grew by 1% to EUR 472 million. The operating result was forecast to grow between –10% and 0%. The actual operating result dropped by 71%, leading to EUR 14 million. The forecast was not achieved due to negative effects of business developments in China and Mexico as well as from impairments.
Sales in the former Liquid Crystals division were predicted to rise in the range between 5% and 10%, but they actually grew by 38% to EUR 1,013 million. The operating result was forecast to increase by between 15% and 25%, yet the division significantly exceeded that, rising 132% to EUR 527 million in 2010. This was due to the fact that business recovered far better than expected. Furthermore, new technologies, especially PS-VA, and favorable exchange rates also contributed to this increase.
Sales in the former Performance & Life Science Chemicals division were expected to grow between 3% and 8%. However, total revenues grew by 17% to EUR 1,411 million. The operating result increased 111% to EUR 205 million, which significantly exceeded the forecast of 15% to 20%. In this division, this was attributable likewise to positive business development and favorable currency effects.
back
