Thus, with improved revenues and an improved gross margin, the operating result increased significantly by 77% in the second quarter to EUR 326 million from EUR 184 million in the year-ago quarter. In the first half of 2010, the operating result surged by 62% to EUR 621 million.
The Group return on sales (ROS: operating result/total revenues) increased to 14.8% in the second quarter of 2010 compared to 9.7% in the year-ago quarter, boosted by the Chemicals business sector. Group core ROS (operating result excluding Serono-related amortization of intangible assets/total revenues) in the second quarter of 2010 was 21.3% compared to 17.3% in the year-ago quarter.
Merck booked exceptional items totaling EUR 1.2 million in the second quarter of 2010. These relate to the former capital gain from the divestment of the Electronic Chemicals business in 2005 and are reimbursements of subsequent taxes to the buyer BASF for which Merck had remained accountablE. Merck also booked the capital gain at that time under exceptional items. There were no exceptional items during the first quarter 2010 but the company recorded exceptional items amounting to EUR –69 million during the first quarter of 2009.
Therefore, earnings before interest and tax (EBIT) in the second quarter of 2010 rose 76% to EUR 325 million compared to EUR 184 million in the year-ago quarter. EBIT nearly doubled to EUR 620 million in the first half of 2010.
Due to interest payments on the financing for Millipore, Merck’s financial result more than doubled to EUR –78 million in the second quarter. For the half year, the financial result was EUR –117 million compared to EUR –71 million in the first half of 2009.
The Merck Group’s second-quarter profit before tax increased 67% to EUR 247 million from EUR 148 million in the year-ago quarter. In the first half of 2010, profit before tax more than doubled to EUR 503 million. Merck’s underlying tax rate was 24.2% for the second quarter of 2010 compared to 25.9% in the year-ago quarter.
Profit after tax in the second quarter of 2010 increased 70% to EUR 187 million from EUR 110 million in the second quarter of 2009. For the first half of 2010, profit after tax more than doubled to EUR 381 million from EUR 170 million in the year-ago period.