DARMSTADT, Germany (Reuters) – the German group Merck KGaA gain failed to meet the expectations of analysts for the fourth quarter, because of the weakness in demand for liquid crystal used in flat panel displays.
The main world manufacturer of liquid glass used in flat-screen televisions said that its quarterly operating profit more than doubled, 292 million euros (386 million dollars), but was under the average of 318 million euros forecast calculated in a poll by Reuters.
The net gain, of 136 million euros, not met consensus expectations of € 140 million.
The group, which also develops drugs, said on Tuesday that this year expects a slight increase in sales and earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for special items.
The company added that extraordinary charges for a cost-cutting program could produce a decline in EBITDA this year.
Merck proposed an annual dividend of EUR 1.50 per share, more than the 1.26 euros expected on average analysts.
(Frank Siebelt report); (Written by Ludwig Burger)
