Merck & Co to cut 12%-13% of workforce, despite good 2011 2nd-qtr results

1 August 2011

US pharma giant Merck & Co (NYSE: MRK) posted a strong set of second-quarter 2011 financial results, showing that sales for the period rose 7% to $12.15 billion. Adjusted (non-GAPP) earnings were $2.95 billion, or $0.95 a share, compared with $2.71 billion, or 86 cents a share a year earlier. Earnings per share were in line with forecasts of analysts polled by Thomson Reuters, who expected Merck to report revenues of $11.78 billion.

GAPP net income was $2002 billion compared with $752 million in the like 2010 period, and non-GAPP income came in at $2.95 billion versus $2.71 billion. For the year, the company raised the lower end its per-share earnings forecast by $0.02 to between $3.68 and $3.76, while affirming its revenue guidance. Analysts predict full-year earnings of $3.74 a share. Merck’s shares fell 2.3% to $34.13 by close of trading on Friday, and registered a 5.4% decline for the week.

Update to merger restructuring program

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