Merck KGaA third-quarter sales and earnings beat forecasts

German drug major Merck KGaA (MRK: DE) this morning posted financial results for the third quarter of 2012, showing that total revenues rose 12.2% to 2.84 billion euros ($3.62 billion). Sales also grew 11.8% to 2.72 billion euros, reflecting organic sales growth of 5.9%, a 5.7% positive benefit from foreign exchange rates and a 0.2% increase from acquisitions and divestments. The firm’s shares edged 0.6% higher to 98.58 euros in early trading.

Earnings before interest, taxes, depreciation and amortization excluding one-time items leapt 15.6% to 754.2 million euros, or 27.7% of sales, beating the average expectations of 739.9 million euros polled by Bloomberg. This margin improvement reflects the stronger top-line growth and more efficient resource allocation throughout the group. The increase in one-time costs (including impairments) of 98 million euros weighed on reported net income (profit after tax attributable to Merck shareholders) of 185 million (versus 224 million euros in the like, year-earlier quarter) or earnings per share of 0.85 euros versus 1.03 euros. However, adjusted for one-time costs, EPS pre one-time items increased 22.2% to 1.98 euros.

Lifts guidance for 2012