11.01.00
Despite narrowing third quarter losses, Revlon said it plans to close two of its North American operations and eliminate 1,175 jobs, or about 14% of its 8,400 worldwide work force. For the third quarter ended Sept. 30, the company recorded a net loss of $26.3 million, compared to a net loss of $164.7 million a year ago. Excluding a $13.7 million restructuring charge, the company lost $12.6 million.
Revenues fell 22% to $351.9 million, compared with sales of $452.4 million in the year ago quarter. However, last year's figure included sales of its worldwide professional products and its Plusbell businesses, divisions that were sold in the first half of 2000, the company said.
Revlon said will close its Ontario plant in January and its Phoenix plants within the next 12 months, consolidating those operations at its Oxford, N.C. Revlon said it expects to post $55 million to $60 million in restructuring charges over the next 12 to 15 months primarily for employee severance. The company estimates an annual savings of $25 million to $30 million.
The moves are part of a larger plan to revitalize Revlon, spearheaded by Jeffrey Nugent, who came on board as president and chief executive officer in December 1999.
"I am confident that we are on track for a healthier new Revlon," Mr. Nugent told investors on a conference call. The company said its Phoenix facility had been underutilized and its location in the Western part of the United States resulted in logistical inefficiencies.
During the past couple of months, Revlon has announced a series of turnaround strategies, including new product lines,such as skin toners that have Vitamin C, slated for the first half of 2001. Mr. Nugent said that the company plans to revitalize its Almay brand of cosmetics with the introduction of a new group of skin care and nail care products in December. The new products will represent Almay's largest offerings in the past five years, he said.
"All of this will help stimulate top-line growth," Mr. Nugent said. Last month, Revlon said it has established new terms with its U.S. retail partners, which offer incentives to reduce costly returns of merchandise.
Revenues fell 22% to $351.9 million, compared with sales of $452.4 million in the year ago quarter. However, last year's figure included sales of its worldwide professional products and its Plusbell businesses, divisions that were sold in the first half of 2000, the company said.
Revlon said will close its Ontario plant in January and its Phoenix plants within the next 12 months, consolidating those operations at its Oxford, N.C. Revlon said it expects to post $55 million to $60 million in restructuring charges over the next 12 to 15 months primarily for employee severance. The company estimates an annual savings of $25 million to $30 million.
The moves are part of a larger plan to revitalize Revlon, spearheaded by Jeffrey Nugent, who came on board as president and chief executive officer in December 1999.
"I am confident that we are on track for a healthier new Revlon," Mr. Nugent told investors on a conference call. The company said its Phoenix facility had been underutilized and its location in the Western part of the United States resulted in logistical inefficiencies.
During the past couple of months, Revlon has announced a series of turnaround strategies, including new product lines,such as skin toners that have Vitamin C, slated for the first half of 2001. Mr. Nugent said that the company plans to revitalize its Almay brand of cosmetics with the introduction of a new group of skin care and nail care products in December. The new products will represent Almay's largest offerings in the past five years, he said.
"All of this will help stimulate top-line growth," Mr. Nugent said. Last month, Revlon said it has established new terms with its U.S. retail partners, which offer incentives to reduce costly returns of merchandise.