(FRANKFURT) - German pharmaceutical giant Merck posted third quarter results Wednesday that exceeded analysts expectations, but the group said the strong euro would affect its full-year sales.

Merck said sales this year should increase by 7.0-9.0 percent this year from the level in 2006 excluding currency effects, but warned that the strong euro would probably cut that result to 4.0-6.0 percent.

"As more than half of Merck's sales are generated outside the eurozone, currency effects are having a major impact on the results for 2007," a company statement said.

Merck's net profit fell by 74.9 percent to 36.2 million euros (51.6 million dollars), as a result of one-off effects from its September 2006 purchase of the Swiss biotechnology laboratory Serono for 10.6 billion euros.

But core earnings per share (EBS), the measure used as a benchmark by analysts, jumped by 46.9 percent to 1.41 euros, higher than an average analyst forecast compiled by Thomson Financial of 1.18 euros.

Sales in the third quarter, which included Serono, rose by 54.9 percent to 1.67 billion euros, while operating profit gained 55.7 percent to 291.5 million.

Merck's chemicals activities posted an 8.3 percent increase in revenues to 238 million euros, in large part owing to its liquid crystals division which supplies manufacturers of flat screen televisions.

The result would have been stronger but for the strong euro, which reduced quarterly revenues by 5.1 percent, Merck said.

A "high proportion of chemicals revenues (is) generated in US dollars and Asian currencies," the company explained.

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