Merck & Co reported higher-than-expected second-quarter earnings on Friday, helped by strong sales of its treatments for diabetes, arthritis and

The U.S. drugmaker, which completed its $41 billion acquisition of Schering-Plough Corp in November, said it had earned $752 million attributable to Merck, or 24 cents per share. That compared with $1.56 billion, or 74 cents per share, a year earlier.

Excluding special items, profit was 86 cents per share. Analysts on average expected 83 cents, according to Thomson Reuters I/B/E/S.

Merck said it now expected full-year 2010 earnings of $3.29 to $3.39 per share, excluding special items, a slight adjustment from its earlier view of $3.27 to $3.41.

(Reporting by Ransdell Pierson; Editing by Lisa Von Ahn)