FRANKFURT-Pharmaceutical and chemical company Merck KGaA Monday reported a steeper-than-expected 76% fall in first-quarter net profit, hurt by slumping demand for liquid crystals and pigments, but said it sees revenue growth of up to 5% for 2009.
Net profit for the quarter ending March 31 fell to €56.7 million ($75 million), from €239.1 million a year earlier. Analysts had expected a net profit of €101 million.
Total revenue -- including royalty payments made to Merck -- was almost unchanged at €1.85 billion, from €1.86 billion. That topped analysts' forecasts of €1.83 billion.
For 2009, the company said it sees revenue growth of up to 5%, and core return on sales of between 15% and 20%.
Merck KGaA became Europe's largest biotech company in 2006 with the purchase of Serono. It isn't associated with U.S.-based drug company Merck & Co.
Merck KGaA shares closed Friday at €66.36. So far this year, the shares have gained nearly 1% of their value, outperforming the Dow Jones Euro Stoxx Health Care index which has shed about 10%.
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