Merck & Co's 2nd-qtr 2010 profits plunge 52% on S-P buy costs, but still beat expectations
Costs related to its $41 billion acquisition of fellow drug major Schering-Plough last year have eaten into Merck & Co's profits, with the company posting a 52% drop in second-quarter 2010 earnings but, excluding items, beat consensus expectations. In morning trading last Friday, when the figures were released, Merck's share fell 2.4% to $34.23.
Net income amounted to $752.4 million, or $0.24 per share, down from $1.56 billion, or $0.74a share, in 2009's second quarter. The company reported non-GAAP (generally accepted accounting principles) earnings per share for the second quarter of $0.86, which excludes purchase accounting adjustments, merger-related expenses, restructuring costs and the gain on AstraZeneca's asset option exercise. Worldwide sales for the second quarter of 2010 were $11.3 billion.
Guidance updated
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