Revlon Loss Narrower Than Expected

Revlon Inc. today reported a first-quarter loss that was less than expected, as smaller sales were balanced by lower expenses from decreased spending on advertising and reduced promotional sales volume.

The New York-based maker of Revlon and Almay cosmetics, Flex shampoo and other personal care products said its loss from ongoing operations for the quarter, ended March 31, was $24.3 million, or 47 cents per diluted share. In the year-earlier period, Revlon — which is controlled by financier Ronald Perelman — lost $23.7 million, or 46 cents per share.

Forecasts ranged from a loss of 61 cents to a loss of 77 cents, with a consensus of 69 cents, according to four analysts surveyed by data tracking firm Thomson Financial/First Call.

As Revlon struggles to reverse a string of losses, it is undergoing a restructuring plan that includes new products, new and increased advertising, and a new cost structure.

The operating results exclude net gains for certain divested businesses and the operating results of those businesses, as well as restructuring charges of $14.6 million in 2001 and $9.5 million in 2000, and additional consolidation costs of $8.1 million in 2001.

Sales from ongoing operations declined to $323.3 million from $355.4 million in the year earlier period, diminished by the effect of less advertising and lower promotional sales volume. Sales were down both in North America and abroad. Revlon said ad spending in the second quarter will be higher than a year ago.