Merck KGaA's 1st-qtr profit tumbles 76.3% to 56.7M euros on lower liquid crystal sales

German drug major Merck KGaA's first-quarter 2009 net profit fell 76.3% to 56.7 million euros ($73.2 million) on lower sales of liquid crystals,  as worldwide demand for televisions and computer screens slowed.

Revenues during the period inched down 0.2% to 1.9 billion euros. Drug  sales rose 9.7% to 1.42 billion euros, while turnover from Merck's  chemicals division declined 22% to 436.0 million euros, reflecting the  global economic downturn, and liquid crystal sales dropped 44% to 131.0  million euros.

"Regarding liquid crystals, we are convinced we reached the bottom in  the first quarter," said Karl-Ludwig Kley, chairman of Merck's executive  board. "As the fog obscuring the future has now lifted enough, we are  able to provide guidance for the full year. We expect the group's total  revenues will increase from zero to 5% and that our core return on sales  will be between 15% and 20%," he added.