By Ludwig Burger
FRANKFURT (Reuters) -Germany’s diversified group Merck KGaA flagged that full-year operating earnings would likely be in the lower half of its target range on weak demand for specialty materials that are used to make biotech drugs and semiconductors.
The maker of pharmaceuticals, lab gear and specialty chemicals confirmed that 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, would come in between 5.8 billion euros ($6.21 billion) and 6.4 billion euros but would be “trending in the lower half of the absolute range”.
That would be down from 6.8 billion in 2022.
It also reported a 20% decline in quarterly adjusted EBITDA to 1.45 billion euros ($1.55 billion) in the third quarter, slightly ahead of an average analyst estimate of 1.39 billion posted on the company’s website.
Last month, Merck raised the prospect of returning to revenue growth next year, recovering from a slump in demand for its specialty materials to produce biotech drugs and semiconductors.
($1 = 0.9340 euros)
(Reporting by Ludwig Burger; Editing by Miranda Murray)
