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 Monday.
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.
