* Announces restructuring, 850 job cuts
* Q2 EPS 44 cents ex-items vs 38 cent estimate
* Warns full-year results likely to miss projections (Adds details on results, restructuring, CEO comment)
NEW YORK, July 23 (Reuters) - IMS Health Inc RX.N, which tracks market data on the pharmaceutical industry, said second-quarter profit dropped 19 percent and warned full-year results would probably miss its projections as customers cut spending.
The company also announced a restructuring to bring down costs, including shedding 850 positions, or 11 percent of the global workforce.
Problems afflicting the pharmaceutical industry, such as generic competition and a dearth of new products, compounded by an economic downturn have caused customers “to significantly rein in their spending,” Chief Executive David Carlucci said in a statement.
“As a result, we are taking decisive actions to lower our cost structure and better position the business for a return to growth.”
Second-quarter net income fell to $62.9 million, or 34 cents per share, from $77.7 million, or 42 cents per share, a year earlier.
Excluding asset impairment charges and other items, earnings were 44 cents a share, 6 cents ahead of analysts’ forecasts, according to Reuters Estimates.
Revenue fell 13 percent to $522.8 million, below the $564.4 million expected by analysts.
The company expects its full-year range for earnings, excluding items, could fall 10 cents below its prior projection of $1.70 to $1.77 per share. Analysts looked for $1.66.
The job cuts will come from a mix of layoffs and not filling open positions, spokesman Gary Gatyas said. About 500 to 600 of the 850 job cuts will be in Europe, where the company is reducing and consolidating operating units.
The company said it would record a third-quarter pretax charge of between $110 million and $120 million. It expects the restructuring to generate annual savings of $80 million to $85 million by 2011. (Reporting by Lewis Krauskopf; Editing by Lisa Von Ahn and Jeffrey Benkoe)
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