Merck KGaA reported better-than-expected fourth-quarter earnings on Thursday morning as it proposed a larger dividend than the market had estimated.

The German chemical and pharmaceutical company closed the fourth quarter of 2012 with sales of €2.8bn, beating the consensus estimate of €2.78bn. Adjusted earnings per share (EPS) settled in at €2.05, compared the €2.03 market forecast.

The group also proposed a dividend of €1.70 that topped the consensus estimate of €1.55.

For 2013 and 2014, the company expects a significant increase in net profit with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising more than sales.

Merck had previously forecast that 2014 sales of between €10.35bn and €10.7bn, EBITDA of €3bn to €3.5bn and an EPS of €8.20 to €9.00.

Merck KGaA was up 4.59% at €114.05 in morning trade in Frankfurt.

SC

Related share prices