In 2010, the division continued to accelerate its innovation strategy, launching several critical new products such as Scepter ™, the world’s first automated handheld cell counter. With a broad-based portfolio, Merck Millipore is focusing on the growing demand for integrated and more sophisticated research tools from the life science industry.
|
Merck Millipore | Key figures |
XLS | ||
|
|
|
|
|
|
EUR million |
2010 |
2009 |
Δ in % |
|
Total revenues |
1,681 |
929 |
81 |
|
Gross margin |
871 |
434 |
101 |
|
R&D |
78 |
32 |
141 |
|
Operating result |
44 |
106 |
–59 |
|
Exceptional items |
– |
11 |
– |
|
Free cash flow |
–4,672 |
123 |
– |
|
Underlying free cash flow |
263 |
128 |
106 |
|
ROS in % |
2.6 |
11.5 |
|
Total revenues of Merck Millipore amounted to EUR 1,681 million in 2010. This corresponds to growth of 81%. The revenues and expenses of Millipore have been included since July 2010. Organic growth of the division, meaning excluding acquisitions and currency effects, amounted to 5.6%.
Merck Millipore | Sales by region
Merck Millipore generated nearly 40% of its total revenues in Europe, the division’s largest market. Double-digit growth rates were achieved in the other regions, not least thanks to the acquisition. The division also recorded organic sales growth, with Asia posting a double-digit increase.
The operating result of the Merck Millipore division was EUR 44 million, corresponding to a decline of 58.7% compared to 2009. It should be noted here that the operating result for 2010 was lowered by transaction and integration costs of EUR 87 million. Moreover, cost of sales, and consequently gross margin, were impacted by one-time expenses of EUR 86 million in connection with the purchase price allocation for the acquired Millipore inventories (more information can be found under “Financial position and results of operations”). Additionally, the division bore the ongoing amortization expense for the acquired intangible assets recognized within the scope of the purchase price allocation. In total, amortization of intangible assets was EUR 96 million and related almost exclusively to the second half of 2010.
The division’s ROS amounted to 2.6% compared to 11.5% in 2009. Underlying free cash flow was EUR 263 million compared to EUR 128 million in 2009.
Strong position in fast-growing markets
The realignment of the Chemicals business sector as a result of the acquisition is enabling Merck to achieve leading positions in high-margin, fast-growing markets, e.g. the biotech industry. The company is now even less exposed to economic cycles. The steady, resilient revenue stream from the Merck Millipore division balances the Liquid Crystals business within Performance Materials and the Pharmaceuticals business sector. Merck Millipore is positioned globally as a strategic supplier driven by innovation, premium brand products, and competitive differentiation in increasingly competitive sectors.