By Christopher Alessi 

FRANKFURT--German pharmaceuticals and chemicals company Merck KGaA on Tuesday reported a near 26% rise in profit for the third quarter and raised its guidance for the full year because of growth at the life science and health-care businesses.

Net profit for the period ended Sept. 30 was EUR457 million ($491.4 million), compared with EUR364 million a year earlier, boosted by the company's recent acquisition of U.S. laboratory equipment maker Sigma-Aldrich, which closed in November 2015.

Merck said it now expects earnings before interest, taxes, depreciation and amortization, Ebitda, before one-time items for 2016, of between EUR4.45 billion and EUR4.6 billion, up from a previous expectation for EUR4.25 billion to EUR4.4 billion.

The improved outlook reflects higher profitability at the health-care unit, in part due to the release of around EUR40 million in provisions for research projects in the quarter, the company said.

Quarterly sales rose by 19% to EUR3.72 billion, driven by the Sigma-Aldrich acquisition.

The company's closely-watched Ebitda before one-time items rose by 24%, to EUR1.17 billion, driven by Sigma-Aldrich and the health-care business, slightly beating analysts' forecasts. Analysts had predicted Ebitda before one-time items of EUR1.12 billion, according to a recent poll conducted by The Wall Street Journal.

Merck "reported again a solid set of figures" above expectations, Peter Spengler, an analyst at DZ Bank, wrote in a note Tuesday morning.

The $17-billion Sigma-Aldrich transaction, first announced in 2014, has been a primary driver of growth at Merck in recent quarters. Sigma-Aldrich has been integrated into the company's life science division.

The deal was part of a drive by the company to strengthen its presence in the U.S. market and expand beyond its traditional pharmaceuticals division, which has struggled to bring new lucrative drugs to market in recent years.

Merck has also expanded its specialty chemicals business, which is a world leader in the production of liquid crystals that are used in display screens.

The company isn't affiliated with U.S.-based Merck & Co.

Write to Christopher Alessi at christopher.alessi@wsj.com

(END) Dow Jones Newswires

November 15, 2016 02:54 ET (07:54 GMT)