Revlon reports a 3Q loss on charges, revenue up
NEW YORK -- The cosmetics company Revlon Inc. reported a loss for the third-quarter as restructuring and litigation charges more than offset the impact of a 3 percent rise in revenue.
Revlon, whose brands include Almay, Mitchum and its namesake, said that it lost $15 million, or 29 cents per share in the three-month period ended Sept. 30. That compares with net income of $100,000, or break-even earnings per share, in the year-ago period.
The latest results included $24.1 million of restructuring and related charges and a charge of $2.2 million connected to resolving pending litigation related to the company's 2009 exchange offer.
Revenue edged up to $347 million from $337.2 million in the year-ago period. Excluding currency fluctuation, revenue would have risen 4.8 percent in the quarter.
Revlon announced last month that it was cutting 250 jobs, or about 5 percent of its workforce, as it exits two plants in a broad restructuring aimed at cutting costs.
Like other consumer products makers, Revlon has been facing high raw material costs, weakness in Europe and a slowdown in China.
Revlon said last month it will close its manufacturing plant in France and leave its leased manufacturing plant in Maryland and move manufacturing to other plants and third parties.
It will also restructure operations in France and Italy and realign its operations in Latin America, including consolidating Latin America and Canada into one region.
The cosmetics company employs about 5,200 people overall.
In the U.S. revenue rose 4 percent to $192 million in the third quarter. The increase was primarily fueled by higher net sales of Revlon color cosmetics and the inclusion of the net sales of its Pure Ice business.
In Asia Pacific, net sales were $60.9 million, a 5 percent increase from the year-ago period. In Europe, Middle East and Africa, net sales were $43.8 million, down 14.3 percent from the year-ago period. In Latin America, net sales climbed 19.5 percent to $30.6 million.
Revlon shares rose 8 cents to $15.02 in midday trading Thursday. That's about the midpoint of its 52-week range of $12.60 and $17.99.
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