Merck & Co. said Monday its third-quarter profit rose 7 percent as lower costs offset a revenue dip stemming from the loss of sales from Vioxx, the pain reliever the company withdrew last year.

Meanwhile, Schering Plough Corp. said its profit more than tripled on strong sales as the company continues to march toward a turnaround. And Berlin-based Schering AG said its third quarter profits grew 29 percent on stronger sales of its birth control drug and lowered costs.

Merck, which also makes Zocor for high cholesterol and the osteoporosis treatment Fosamax, reported net income of $1.42 billion, or 65 cents per share. That beat by 3 cents a share the consensus forecast of analysts surveyed by Thomson Financial.

In the same period of 2004, Merck posted net income of $1.33 billion, or 60 cents per share, and took a charge of $141 million for costs related to withdrawing Vioxx. Merck withdrew Vioxx after a study showed it doubled patients' risk of heart attack and stroke after 18 months of use.

Merck reported an $80 million charge related to ongoing job cuts during the quarter.

Merck shares rose 82 cents, or 3.1 percent, to close at $27 Monday on the New York Stock Exchange.

Merck got a boost from sales of Singulair, a drug for asthma and seasonal allergies which rose 11 percent to $692 million, but sales of Fosamax were flat and sales of Zocor, Merck's No. 1 drug, fell 14 percent to $1 billion.

"We must improve our performance over the long term, and I truly believe we can," said Richard T. Clark, who took over as Merck's CEO and president in May, in a prepared statement.

Merck said it expects earnings per share for 2005 to total $2.47 to $2.51, excluding charges. Analysts were forecasting earnings per share of $2.49.

Merck said that as of Sept. 30, it has been named as a defendant in about 6,400 lawsuits over Vioxx. It lost the first Vioxx trial and a second one is underway in New Jersey.

Both Merck and Schering-Plough benefited from their joint venture which sells cholesterol-lowering drugs Vytorin and Zetia. Revenue from the partnership venture rose to $616 million from $340 million.

Schering-Plough, the maker of allergy medicine Nasonex, earned $43 million, or 3 cents a share, for the three months ended Sept. 30 compared with $14 million, or 1 cent a share, in the year-ago period.

Revenue rose 15 percent to $2.28 billion from $1.98 billion.

After a charge for a research and development payment and a favorable tax impact, the company earned 8 cents a share, beating by 2 percent analysts' estimates.

Its shares rose 2 cents to close at $21.13 Monday on the NYSE.

Revenue from Remicade, a treatment for rheumatoid arthritis and Crohn's disease, rose 26 percent to $237 million.

Sales of Temodar, a treatment for certain types of brain tumors, rose 25 percent to $152 million. Nasonex sales rose 11 percent to $170 million.

During a conference call with analysts, Schering-Plough chairman and CEO Fred Hassan said the company was beginning a turnaround phase after taking "bold action to stabilize and repair" the company. Hassan joined the company in April 2003 when it was reeling from patent expirations and problems with federal regulators.

Jason Napodano, an analyst at Zacks Investment Research, said he was impressed with Schering-Plough's performance, noting that Hassan said the company was seeking investment opportunities and wouldn't grow dependent on the successful cholesterol-lowering franchise. Schering-Plough had faltered badly when it lost patent protection on its former top seller, Claritin.

"The quarter was OK but I see no reason to buy the stock," said Napodano.

Schering AG, which is not related to Schering-Plough, said its third quarter profit rose to 160 million euros ($192.2 million) from 124 million euros. Analysts had expected the company to report a profit of 136 million euros ($163.4 million).

Sales rose 9 percent to 1.36 billion euros ($1.63 billion) from 1.24 billion euros, driven in part by its oral contraceptive Yasmin which saw a 34 percent increase to 165 million euros ($198.2 million).

Revenues from multiple sclerosis drug, Betaseron, rose 8 percent to 223 million euros ($267.8 million).

Investors pushed shares of Schering up more than 2.7 percent to 51.43 euros ($61.78) in Frankfurt trading.

AP Business Writers Linda Johnson in Trenton and Matt Moore in Berlin contributed to this story.

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