Merck Group sales in the first quarter rose by 7.6 per cent to Euro 1,381 million, mainly driven by good organic business growth, but slightly affected by currency effects.

The operating profit in the first quarter rose by 17 per cent to EUR 198 million, based on a very strong performance by Generics and also by Ethicals and Consumer Health Care. This very good growth rate was supported by good business performance rather than one-time effect. In the first quarter, return on sales (ROS) increased to 14.3 per cent from 13.2 per cent, coming close to the mid-term goal of 15 per cent. Return on capital employed (ROCE) rose to 18.4 per cent from 15.8 per cent, again exceeding Merck's mid-term goal of 15 per cent.

During the first quarter, Merck acquired the OLED and the polymer electronics businesses of Avecia of Manchester, UK, for EUR 50 million. In China, two small pharmaceutical production plants were divested. Proceeds from the sale of Merck's Electronic Chemicals business to BASF AG of Ludwigshafen, Germany, will be booked in the second quarter. The transaction was closed on April 15.

Earnings before interest and tax (EBIT) increased 4.0 per cent to EUR 196 million from EUR 189 million in the year-ago quarter that included results from VWR International.

The divestments of VWR and the BioMer joint venture last year continue to have positive effects on the company. Merck's financial result was reduced by 27 per cent to just EUR -19 million. As a result of the improved financial result, profit before tax rose 8.9 percent to EUR 178 million from EUR 163 million in the year-ago quarter.

Profit after tax increased 20 per cent to EUR 122 million from EUR 102 million as Merck's tax rate continued to decline, dropping to 31 per cent in the first quarter of 2005 compared to 38 per cent in the year ago quarter.

Since December 31, 2004, the number of Merck employees increased by 254 people, or 0.9%, to a total of 29,131, mainly due to the acquisitions from Avecia.

Commenting on the results of the first quarter, Bernhard Scheuble, Chairman of the Executive Board of Merck KGaA, said: "Merck started the year well and we expect a continuation of the positive developments for the remainder of the year from both the Pharmaceuticals and Chemicals business sectors. As a result, full-year sales for the Group should have a growth rate in the single-digit range, unless unfavorable currency impacts increase."

Merck's innovative colorectal cancer treatment, Erbitux, achieved first-quarter sales of EUR 42 million, a 17 per cent increase compared to sales of EUR 36 million in the fourth quarter of 2004. It got first marketing approval in the EU in June 2004 and Merck now has marketing approval for Erbitux in 35 countries.