11
Corporate and Other comprises Group administration expenses for Group functions that cannot be directly allocated to the divisions, such as Finance, Procurement, Legal, Communications, and Human Resources. Corporate costs additionally encompass expenses for central, non-allocated IT functions, including expenses related to the expansion and harmonization of IT systems within the Merck Group. Accordingly, Corporate and Other has no sales to report. Gains or losses on currency hedging are also disclosed in Corporate and Other.
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Corporate and Other | Key figures |
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€ million |
Q1 – 2014 |
Q1 – 2013 |
Change in % |
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Operating result (EBIT) |
–42.9 |
–52.4 |
–18.1 |
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EBITDA |
–39.4 |
–48.7 |
–19.1 |
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EBITDA pre one-time items |
–28.3 |
–45.3 |
–37.5 |
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Business free cash flow |
–31.9 |
–48.1 |
–33.6 |
In the first quarter of 2014, administration expenses recorded under Corporate and Other decreased to € 38 million (Q1 2013: € 43 million). Other operating expenses (net) fell to € –3 million (Q1 2013: € –9 million). This decline was mainly due to a significantly higher foreign currency result, which amounted to € 15 million (Q1 2013: € 4 million). The increase in one-time expenses to € –11 million (Q1 2013: € –3 million) raised the net amount of operating expenses and income. Overall, the aforementioned effects improved EBIT to € –43 million (Q1 2013: € –52 million) and EBITDA to € –39 million (Q1 2013: € –49 million). Adjusted for one-time effects, EBITDA pre one-time items amounted to € –28 million in the first quarter of 2014 (Q1 2013: € –45 million). The improvement in business free cash flow from € –48 million to € –32 million was primarily due to the development of EBITDA pre one-time items.
