Merck 2008 Annual Report Download - page 22

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MANAGEMENT REPORT OF THE MERCK GROUP 17
12 Overall economic situation
14 Economic development
of Merck
15 Financial position and results
of operations
24 Responsibility
26 Merck shares
30 Pharmaceuticals business sector
50 Chemicals business sector
60 Corporate and Other
61 Risk report
64 Report on expected developments
64 Subsequent events
2004 2005 2006 2007 2008
€ million
8,000
6,000
4,000
2,000
Merck Group | Sales by region
806
11%
1,015
14%
1,857
26%
3,524
49%
Merck Group | Sales by region
€ million
Asia, Africa,
Australasia
North America
Latin America
Europe
Total revenues by quarter
€ million 1st quarter 2nd quarter 3rd quarter 4th quarter 2008 2007*
Total 1,858 1,903 1,893 1,904 7,558 7,057
Pharmaceuticals 1,292 1,344 1,352 1,439 5,428 4,877
Chemicals 559 559 541 464 2,123 2,150
Corporate and Other 7 0 0 0 7 29
Components of growth in total revenues by quarter
in % 1st quarter 2nd quarter 3rd quarter 4th quarter 2008 2007*
Organic growth 14 12 14 6.0 11 11
Pharmaceuticals 14 13 17 15 15 13
Chemicals 13 13 7 –14 4.7 8.7
Currency effects –5.4 –6.1 –4.8 –0.5 –4.2 –3.6
Acquisitions/disposals 0.0 –0.1 0.0 0.0 –0.1 51
Total 8.3 6.1 8.7 5.4 7.1 58
*excluding the Generics division
Above-average sales growth in the new markets of eastern Europe and in China
Accounting for nearly half of sales, Europe is Merck’s largest market, followed by Asia
as well as North America and Latin America. Within Europe, France was once again
our top-selling country, where sales increased by 5.6% to € 779 million. Posting slight
growth in sales to € 722 million, Germany was our second-largest market, followed
by Italy with sales of € 343 million and growth of 7.5%. We increased sales in Poland
by 22% to € 86 million and in Russia by 60% to € 72 million. By contrast, sales declined
in the United Kingdom due to currency effects.
Traditionally, our sales in Asia are mainly attributable to liquid crystals. Strong
currency effects in these markets led to only a moderate 3.7% increase in total Group
sales in Asia to € 1,663 million. However, within the Pharmaceuticals business sec-
tor, sales increased in Asia by 22% to € 523 million, with China posting an 86% rise
to € 116 million. In Japan, our pharmaceutical sales soared by 64% to € 30 million
in 2008.