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Revlon posts third straight quarterly loss
2006-11-07
Revlon Inc. (NYSE:REV), the cosmetics maker trying to rebound under the leadership of a new chief executive, posted another quarterly loss on Tuesday as it took charges to discontinue an unsuccessful new line for mature women and restructure its operations. But the loss was narrower than expected, and Revlon shares rose 5 percent in early electronic trading. Revlon, controlled by financier Ronald Perelman, said its third-quarter loss widened to $100.5 million, or 24 cents per share, from $65.4 million, or 17 cents per share, a year earlier. It was the company's third quarterly loss in a row. Analysts on average expected New York-based Revlon to post a loss of 33 cents per share, according to Reuters Estimates. Sales rose 11 percent to $305.9 million. In September, Revlon named a new CEO, said it would discontinue the disappointing Vital Radiance cosmetics line just eight months after its launch, and cut about 250 U.S. jobs as part of a massive shake-up. The company expects to save $34 million per year from its restructuring, with total costs of about $29 million taken this year and next year. Revlon said it took $14 million in restructuring charges in the third quarter, and $49 million in charges related to the end of Vital Radiance. President and CEO David Kennedy said Revlon still expects full-year sales of $1.34 billion and adjusted earnings -- earnings before interest, taxes, depreciation, amortization and other factors -- of $75 million to $85 million. He forecast 2007 adjusted earnings of $210 million. Shares of Revlon rose to $1.40 in early electronic trading from Monday's close at $1.33 on the New York Stock Exchange.
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