Merck KGaA raises forecasts on solid third-quarter 2014

German pharma and chemicals firm Merck KGaA (MRK: DE) this morning reported that revenue for the third quarter of 2014 rose 6.7%t to 2.94 billion euros ($3.65 billion), thanks to solid organic growth and sales contribution from the acquisition of AZ Electronic Materials.

Third quarter earnings before interest, taxes, depreciation and amortization (EBITDA) increased 3.1% to 856.6 million euros from 830.7 million euros in the like year-earlier period, beating the 850 million-euro average estimate of eight analysts surveyed by Bloomberg. Earnings per share, excluding certain items, were 1.15 euros, in line with last year and missing the 1.17-euro average estimate of 10 analysts surveyed by Bloomberg.

Merck says it still expected adjusted EBITDA of 3.3-3.4 billion euros in 2014, up from 3.25 billion last year. Due to the takeover the UK AZ Electronic Materials for $2.6 billion completed in May, Merck now expects group sales to increase to 11.0-11.2 billion euros. It had previously forecast 10.9-11.1 billion euros. Merck’s shares which edged up 1.3% initially, were 1.6% lower at 70.37 euros by 9.20 CET.