Restructuring programs help Revlon decrease its losses

Photo: Restructuring programs help Revlon decrease its losses

Restructuring programs help Revlon decrease its losses

Higher sales and benefits from a restructuring program initiated last year helped Revlon Inc. to narrow its third-quarter loss.

The company, which markets such products as Almay cosmetics and Charlie perfume, lost $10.4 million (EUR7.18 million), or 2 cents per share, for the three months ended Sept. 30 versus a loss of $100.5 million, or 24 cents a share, a year ago.

Revenues rose 11 percent to $339.7 million (EUR234.47 million)from $305.9 million in the year-ago period.

Analysts surveyed by Thomson Financial had expected losses of 8 cents per share and revenues of $314.45 million (EUR217.04 million). The earnings estimates typically exclude one-time items.

"Our performance in the third quarter was driven by a combination of increased net sales, continued benefits from the restructuring actions we took in 2006 and early in 2007 and ongoing control of our costs," said David Kennedy, president and CEO of Revlon in a statement.

Kennedy abruptly replaced Jack Stahl in September 2006 amid continued losses and put into place a restructuring program - the second at Revlon in seven months.

Revlon cut 250 jobs, or 8 percent of its work force, and canceled its recently launched Vital Radiance cosmetics line aimed at older women amid increasing competition from rival L'Oreal SA's Maybelline line and Procter & Gamble Co.'s Cover Girl cosmetics.