Chemicals competition mars financial picture for Merck KGaA

Shares in Darmstadt, Germany-based Merck KGaA (MRK: DE) slumped almost 5% by mid-afternoon today, as the German chemicals and pharmaceuticals manufacturer revealed a drop in earnings due to a “difficult foreign exchange environment,” and Chinese competition in its liquid crystals business.

The picture was more positive on the pharmaceuticals side, with the firm’s healthcare and life science businesses driving sales growth of 2%.

However, currency headwinds would likely lead to a drop in 2018 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the firm said, with foreign exchange rates likely to create a 4%-6% negative impact.