DARMSTADT, Germany (Reuters) - Germany’s Merck KGaA (MRCG.DE) said growth at its liquid crystals business would slow in the second half as its customers, Asian display panel makers, reduce their inventories.
“We expect to see a destocking situation in the second half so that the momentum we’ve had in the first half will level off. Customers are reducing their inventories,” Merck’s Finance Chief Matthias Zachert told journalists at a press briefing at the group’s headquarters in Darmstadt, Germany.
He added that the unit’s business development in the second quarter had been “very good”.
Merck is the world’s largest maker of liquid crystals for television, computer and smartphone displays, with a market share of more than 60 percent.
Reporting by Ludwig Burger; Editing by Victoria Bryan