Merck 2010 Annual Report Download - page 14

to EUR 820 million, respectively. Core return on sales (ROS) was 22%. Yet
we did not reach all our objectives. The Committee for Medicinal Products
for Human Use (CHMP) of the European Medicines Agency (EMA) issued
a final negative opinion regarding the marketing authorization application
for cladribine tablets as a treatment for relapsing-remitting multiple sclero-
sis. In the United States, we are awaiting the FDA’s decision.
The Consumer Health Care division, which is responsible for our over-
the-counter drugs business, continued its growth course, with the exception
of our newly emerging business in China. The restructuring measures
underway there not only slowed sales growth, but also adversely impacted
profitability.
We began consolidating our life science business, including the acquired
Millipore, into the new Merck Millipore division in July. Despite the on going
integration work, we achieved a marked increased in sales. Adjusted for the
acquisition, core ROS was 19%.
The Performance Materials division, which comprises our materials busi-
nesses, can look back at a very successful year. With sales increasing by
38%, it was our strongest growth driver. The Liquid Crystals business
exceeded the EUR 1 billion sales threshold for the first time. The division’s
ROS was 42%.
We were also successful on a regional basis. In Asia, our second-largest
region after Europe, we grew by 37%, posting sales of EUR 2.3 billion. In
the United States, sales increased by 32% to EUR 1.4 billion.
We are looking toward the future with optimism. No doubt we expect the
global financial, economic and debt crises to have a further impact. No
doubt key economies are still a long way from recovering their former sta-
bility and dynamism. The financial sector also remains vulnerable. Despite
all the risks, we expect economic developments to be positive in 2011. For
Merck, we expect total revenues to increase by between 13% and 18%.
We aim to increase the operating result by between 35% and 45%.
Above all, however, we want to further develop the company strategically:
Based on our strong position in display materials, we want to expand
into new fields and new technologies. After having successfully devel-
oped IPS, VA and PS-VA technologies that produce faster and sharper LCD
images and consume less power, we are working on successors. At the same
time, we are aiming to establish ourselves as a materials supplier in new
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