Summary assessment
Overall, Merck’s business performance in 2011 was solid.
As of the beginning of 2011, both the Pharmaceuticals and Chemicals business sectors recorded higher total revenues compared to year-earlier quarters. Particularly the Chemicals business sector contributed significantly to the increase in total revenues as a result of the acquisition of Millipore in 2010. In 2011, the operating result of the Merck Group was heavily impacted by one-time expenses – particularly by impairment losses in the Pharmaceuticals business sector – and consequently fell short of the very strong result of 2010. EBITDA, where depreciation and amortization of non-current assets are added back to earnings before interest and taxes (EBIT), increased in 2011.
The balance sheet ratios and the key financial indicators remained very solid in 2011 and reflected a conservative finance policy. For example, the high equity ratio of 2010 improved further. Group net financial debt was also considerably reduced in 2011 as a result of continuing strong free cash flow.
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Merck Group |
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Total revenues |
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EBITDA |
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EBIT |
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Employees |
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€ 10,276 million |
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€ 2,736 million |
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€ 1,137 million |
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40,676 |
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Underlying free cash flow |
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R&D costs |
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Return on sales (ROS) |
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Global presence |
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€ 1,395 million |
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€ 1,517 million |
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9.6% |
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67 countries |
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Pharmaceuticals | |||||||
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Merck Serono |
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Consumer Health Care | |||||
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Total revenues |
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R&D costs |
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Total revenues |
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R&D costs |
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€ 5,920 million |
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€ 1,225 million |
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€ 496 million |
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€ 23 million |
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Employees |
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Operating result |
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Employees |
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Operating result |
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16,867 |
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€ 304 million |
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1,226 |
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€ 46 million |
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Underlying free cash flow |
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Return on sales (ROS) |
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Underlying free cash flow |
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Return on sales (ROS) |
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€ 1,205 million |
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5.1% |
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€ 40 million |
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9.3% |
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Chemicals | |||||||
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Merck Millipore |
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Performance Materials |
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Total revenues |
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R&D costs |
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Total revenues |
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R&D costs |
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€ 2,393 million |
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€ 135 million |
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€ 1,467 million |
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€ 134 million |
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Employees |
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Operating result |
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Employees |
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Operating result |
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8,544 |
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€ 226 million |
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5,071 |
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€ 525 million |
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Underlying free cash flow |
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Return on sales (ROS) |
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Underlying free cash flow |
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Return on sales (ROS) |
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€ 309 million |
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9.4% |
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€ 492 million |
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35.8% |
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