The world's largest maker of chemicals for flat screens Merck KGaA, seems to have taken a back stance for the year, targeting 3-13% growth in core operating profit this year, which is well below market forecasts. Also reflecting uncertainty over its drugs pipeline, the company has cut its dividend as well.

The company stock dropped as much as 7.7%, which marked the biggest intraday decline for Merck since July 24. Core earnings were of 95 cents a share in the fourth quarter, which missed the average estimate of 1.08 Euros of
15 analysts surveyed by Bloomberg in the past 28 days.

Merck said in a statement today, "The core operating result may increase 3% to 13% this year".

Merck KGaA have hit their lowermost point since July in Frankfurt trading, after the company stated that "this year's earnings will increase less than analysts estimated and proposed a 33% dividend reduction".

Based in Darmstadt, Germany, Merck increased research and development expenses and set money aside for potential litigation at the Merck Serono drug division, sending fourth- quarter operating profit down 69%.

Jack Scannell, a London-based analyst for Sanford C. Bernstein Ltd., in a telephone interview, said, "The Company's 2010 forecast are lower than the 24% consensus estimate for core earnings this year".

"Investors are disappointed", said Daniel Wendorff, a Frankfurt-based analyst for Commerzbank AG. "The dividend may also disappoint the market. The guidance for 2010 means that market expectations were too high".