Merck & Co., the second-largest U.S. drugmaker, forecast first-quarter profit that was less than analysts’ estimates because of an “unfavorable” currency effect. The shares declined in early trading.
Earnings excluding one-time items will be 95 cents to 98 cents a share, Merck said in a statement. That was less than the $1.01 average of 17 analyst estimates compiled by Bloomberg.
Based on an exchange rate of $1.31 per euro, revenue will take a 1 percent to 2 percent hit from currency, the Whitehouse Station, New Jersey-based company said today. Merck reiterated its 2012 adjusted profit forecast of $3.75 to $3.85 a share, with net income projected to be $2.04 to $2.30 a share.
Revenue this year will be at or near 2011 levels on a constant currency basis, Merck said. At current rates, sales would be hurt by 2 to 3 percent, according to the company.
The shares declined 1.4 percent to $37.91 at 8:17 a.m. They had risen 16 percent in the 12 months before today.
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