PFE Pfizer Inc

FRANKFURT—German chemicals and pharmaceuticals group Merck KGaA said Thursday that net profit for the first quarter of 2016 more than doubled, boosted in part by the integration of U.S. laboratory equipment maker Sigma-Aldrich.

Net profit for the period ended March 31 was €591 million ($674.48 million), compared with €282 million during the same period last year.

Earnings per share also more than doubled, to €1.36, but fell short of analysts' forecasts. Analysts had expected EPS of €1.41, according to a recent poll conducted by The Wall Street Journal.

"The integration of Sigma-Aldrich is progressing quickly," newly-appointed Chief Executive Stefan Oschmann said.

The $17 billion deal, which closed in November 2015, was the largest in Merck's history. The acquisition came as part of a larger effort by the company's former CEO, Karl-Ludwig Kley, to move the group away from its traditionally core pharmaceuticals business and build up its specialty chemicals and life science divisions.

Sales climbed by 21% to €3.67 billion, boosted primarily by the integration of Sigma-Aldrich.

The company's closely watched earnings before interest, taxes, depreciation and amortization before one-time items jumped by 27% to €1.08 billion, a result of strong growth at the health care and life sciences division, as well as the Sigma-Aldrich integration.

Ebitda before one-time items at the health care division, which includes pharmaceutical and over-the-counter drugs, grew by 10%, to €508 million. That was a result of both organic growth and the conclusion of commission expenses related to the co-promotion of multiple sclerosis drug Rebif with Pfizer Inc. in the U.S. However, that blockbuster drug saw a slight sales decline due to increased competition from generic alternatives.

At the life science division, Ebitda before one-time items more than doubled to €393 million, mainly as a result of the incorporation of Sigma-Aldrich into that unit.

Sales and earnings at the performance materials business, which produces liquid crystals used in televisions and smartphones, were flat.

Merck reiterated its guidance for the current year, saying it expects sales to increase to between €14.8 billion and €15 billion. The company said it anticipates Ebitda before one-time items between €4.1 billion and €4.3 billion.

Write to Christopher Alessi at christopher.alessi@wsj.com

(END) Dow Jones Newswires

May 19, 2016 03:25 ET (07:25 GMT)

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