Merck KGaA posts strong 2nd-qtr 2011 sales, but charges take toll on profit

German drug major Merck KGaA (MRK: DE) has posted solid revenue figures for the second quarter of 2011. However, a series of one-time charges adversely affected this quarter’s profits, and led to an operating loss of 11.4 million euros ($16.4 million). Net loss was 84.0 million euros compared with a profit of 186.9 million euros in the like 2010 quarter.

Karl-Ludwig Kley, chairman of Merck’s executive board, commented: “Because of these one-time items, we expect our operating profit will be approximately one billion euros in 2011. Adjusted for these one time charges, we would be substantially above the year-ago level.”

However, the company says that "improvements are still needed, especially with respect to the quality of the pharmaceutical pipeline as well as internal processes and structures." Merck had a major disappointment earlier this year when it was forced to abandon the development of its oral multiple sclerosis drug candidate cladribine