12.05.18
After years of declining sales, most recently posting a 2.0% decline in Q3 sales and a 1.7% decline for the nine months, Revlon is initiating a program to streamline operations, reporting structures and business process; i.e., more cuts are on way.
The new 2018 Optimization Program is designed to maximize productivity and improve profitability, cash flows and liquidity. Revlon expects that the actions to be implemented under the 2018 Optimization Program will be substantially completed by Dec. 31, 2019 and it is currently projected to result in annualized cost reductions in the range of approximately $125 million to $150 million by the end of 2019.
In connection with implementing the 2018 Optimization Program, the Company expects to recognize approximately $30 million to $40 million of total pre-tax restructuring and related charges, consisting of employee-related costs, such as severance, pension and other termination costs, as well as related third party expenses. The company also expects to incur approximately $10 million of additional capital expenditures. Of the restructuring charges, the company expects that it will record in the fourth quarter of 2018 an estimated pre-tax restructuring charge of approximately $8 million to $10 million, with the balance to be recognized in 2019. Approximately 85% of the restructuring charges are expected to be paid in cash, with approximately $6 million to $8 million expected to be paid in 2018.
The new 2018 Optimization Program is designed to maximize productivity and improve profitability, cash flows and liquidity. Revlon expects that the actions to be implemented under the 2018 Optimization Program will be substantially completed by Dec. 31, 2019 and it is currently projected to result in annualized cost reductions in the range of approximately $125 million to $150 million by the end of 2019.
In connection with implementing the 2018 Optimization Program, the Company expects to recognize approximately $30 million to $40 million of total pre-tax restructuring and related charges, consisting of employee-related costs, such as severance, pension and other termination costs, as well as related third party expenses. The company also expects to incur approximately $10 million of additional capital expenditures. Of the restructuring charges, the company expects that it will record in the fourth quarter of 2018 an estimated pre-tax restructuring charge of approximately $8 million to $10 million, with the balance to be recognized in 2019. Approximately 85% of the restructuring charges are expected to be paid in cash, with approximately $6 million to $8 million expected to be paid in 2018.