ICON, Ireland’s largest provider of clinical research for drugmakers, has lowered its forecast for 2009 annual earnings and revenue.

Icon expects revenues to be between $880 million (€620 million) and $900 million (€632 million), the Dublin-based company said yesterday. Icon had previously forecast 2009 net revenue of $930 million-$980 million, but indicated in April that earnings would be at the lower end of this range due to “a difficult market”.

It also said at the time it needed “solid business wins and strong cost control” to achieve the targets.

The company fell sharply in New York trading after it issued its earnings update and reported second-quarter net income of $22.8 million, up from $18.8 million in the year earlier.

Icon chairman Dr John Climax said he was pleased with Icon’s performance for the first six months of the year.

“Our growth in margins, operating income and earnings was very encouraging,” he said.

Revenue in 2009 to date was up 5 per cent on the previous year and earnings per share were 24 per cent ahead of the first six months of 2008. Revenue in the second quarter arrived at $220 million.

Icon chief executive Peter Gray said the company continued to expand its margins and as a result had increased its operating income to $29.3 million, up 20 per cent on the same period last year.

During the second quarter, the company “undertook a number of cost reduction steps”, which led to a one-off restructuring charge of $13.4 million. An offsetting credit from state incentive payments relating to prior periods resulted in a net charge of $8.9 million.

In addition, tax credits amounting to a further $4.7 million reduced the provision for income tax. – (Bloomberg)