Merck sticks to savings program despite record sales

Merck sticks to savings program despite record sales

Competitors are better positioned. Kley had often criticized that areas were blown open. Merck has 40,000 jobs worldwide and almost 11,000 in germany. Kley would not say how many of these were on the line. Heiner wilhelm, head of the works council, said: "we don’t want to discuss the figures in public. We want an open-ended process."According to the management, details can be expected in three to six months.

In fiscal year 2011, merck achieved sales of 10.3 billion euro, an increase of almost 11 percent. Profit fell by 2.3 percent to 617.5 million euros due to high write-downs. Operating profit fell by around 12 percent to 985.1 million euros due to write-downs on the u.S. Laboratory supplier millipore and the pharmaceuticals business. 1.1 billion euros had been expected here, originally even up to 1.6 billion euros.

In terms of sales, merck benefited from its broad positioning with chemicals and pharmaceuticals. In addition, millipore 2011 is the first full fiscal year in which it has been recorded. 2010 had been six months.

For the dividend, management proposes a 20 percent increase to 1.50 euros. The debris refers to 2011, not to future planned fluctuations. "2011 was a pretty solid year for merck economically," said kley. "We are well positioned today. We want to act from a position of strength."

In the course of fiscal 2011, merck had to scale back forecasts that had been clearly made when the balance sheet was presented a year ago. For the prospect of this year the company remained rather general revisions.

Reconstruction and staff reductions will cause special costs that are difficult to predict now. Discussions had begun with the representatives of the company, which is active in 67 countries worldwide. "We only accept payments that are in line with the social contract and safeguard merck’s future," said works council head wilhelm.

On the frankfurt stock exchange, the share price of the DAX group fell slightly on tuesday. After the announcement of the figures and the outlook, the share price was around 80 euros at midday, about 0.8 percent below the previous day’s level.

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