Germany's diversified group Merck KGaA reported a 20 per cent decline in quarterly operating profit on weak demand for speciality materials that are used to make biotech drugs and semiconductors.

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Earnings before interest, taxes, depreciation and amortisation, adjusted for one-offs, fell to 1.45 billion euros ($1.55 billion) in the third quarter, slightly ahead of an average analyst estimate of 1.39 billion posted on the company's website.

Last month, Merck raised the prospect of returning to revenue growth next year, recovering from a slump in demand for its speciality materials to produce biotech drugs and semiconductors.