Revlon To Cut Up to 1,200 Jobs
Jan. 11, 1999
NEW YORK (AP) _ Revlon Inc. will slash up to 1,200 jobs, or 7 percent of its work force, as part of a plan to boost profits at the struggling cosmetics giant.
The company also will sell some excess real estate holdings under the reorganization plan announced today.
The efforts expand on Revlon's October announcement that it would close three international plants to save costs. Revlon's stock was up 56 1/4 cents at $19.50 in morning trading on the New York Stock Exchange.
The restructuring comes amid tough times for Revlon, which is the best-selling mass-market cosmetics brand in the country ahead of Procter & Gamble's Cover Girl and L'Oreal's Maybelline line.
Revlon has been hurt by global economic turmoil, especially in South America and Asia.
Also troubling has been a slowdown in orders from U.S. retailers. Its biggest losses have been at drug stores, with merchants using up existing inventory before ordering more.
Revlon's third-quarter profits fell by 62 percent from a year ago, and the company missed its sales targets by nearly $100 million. It will release its fourth-quarter results in early February.
The company expects to take an $80 million charge to fund the restructuring _ $40 million in the fourth quarter and the remainder in 1999. It expects to save $30 million to $40 million annual after the changes are in place.
Revlon said it was comfortable with Wall Street analysts' estimates of $1.55 a share, before charges, for 1999. It did, however, acknowledge that the inventory problems and uncertainty over its businesses abroad will affect its results.
Revlon produces cosmetics and personal care products under the Revlon, Almay and Ultima II brands.