Results 

Thus, with improved revenues and an improved gross margin, the operating result rose substantially by 49% in the first quarter to EUR 295 million from EUR 198 million in the year-ago quarter.

The Group‘s first-quarter core operating result (operating result excluding amortization of intangible assets from the Serono purchase) was EUR 432 milllion, an increase of 26% compared to EUR 343 million in the year-ago-quarter.

The Group return on sales (ROS: operating result/total revenues) increased to 14.0% in the first quarter of 2010 compared to 10.7% in the year-ago quarter. Group core ROS (operating result excluding Serono-related amortization of intangible assets/total revenues) in the first quarter of 2010 was 20.6% compared to 18.5% in the year-ago quarter.

There were no exceptional items during the first quarter of 2010 but Merck booked a total of EUR –69 million in exceptional items during the first quarter of 2009.

Therefore, earnings before interest and tax (EBIT) more than doubled to EUR 295 million in the first quarter of 2010 compared to EUR 129 million in the year-ago quarter.

Merck announced on February 28 that it plans to acquire the Millipore Corporation, a leading U.S.-based life science company, for a total transaction value, including net debt, of approximately EUR 5.3 billion (USD 7.2 billion). Merck has already arranged for the necessary financing, leading to a first-quarter decline of 11% in the financial results to EUR –39 million from EUR –35 million. More details on the proposed Millipore acquisition can be found in the Notes.

The Merck Group’s first-quarter profit before tax also more than doubled to EUR 256 million from EUR 94 million in the year-ago quarter. Merck’s underlying tax rate was 24.0% for the first quarter of 2010 compared to 24.7% in the year-ago quarter.

Profit after tax in the first quarter of 2010 more than tripled to EUR 195 million from EUR 60 million in the first quarter of 2009.