Revlon narrows loss in 2Q By ANNE D'INNOCENZIO, AP Business Writer

Revlon narrows loss in 2Q By ANNE D'INNOCENZIO, AP Business Writer
2 hours, 16 minutes ago



NEW YORK - Revlon Inc. reported narrowed second-quarter losses Wednesday as the New York-based cosmetics company reaped benefits from a restructuring program initiated last year, a solid rise in sales and better cost controls.

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The company, which is controlled by financier Ron Perelman and markets such products as Almay cosmetics and Charlie perfume, said it lost $11.3 million, or 2 cents per share, for the three months ended June 30. That compared with $87.1 million, or 20 cents a share in the year-ago period.

Revenues rose almost 9 percent to $349.2 million, up from $321.1 million. Analysts surveyed by Thomson Financial had expected losses of 7 cents per share and revenues of $325.93 million.

Shares jumped nearly 11 percent, or 11 cents, to $1.15 at the open of trading Wednesday.

"Our performance in the second quarter was driven by a combination of sales growth, benefits from the restructuring actions we took last year and ongoing control of our costs," said David Kennedy, president and chief executive, in a statement.

Kennedy abruptly replaced Jack Stahl last September amid continued losses and put into place a restructuring program — the second at Revlon in seven months. Revlon cut 250 jobs, or 8 percent of its work force, and canceled its recently launched Vital Radiance cosmetics line aimed at older women amid increasing competition from rival L'Oreal SA's Maybelline line and Procter & Gamble Co.'s Cover Girl cosmetics.

In the United States, net sales in the second quarter rose 13.4 percent to $204.2 million, compared with $180.0 million in the year-ago period. Excluding the impact of foreign currency fluctuations, net sales increased 7.5 percent from a year ago. The second-quarter 2006 net sales were reduced by approximately $14 million by Vital Radiance.

In the company's international operations, net sales in the second quarter of 2007 rose 2.7 percent to $145.0 million, compared to $141.1 million in the year-ago period. Excluding the impact of foreign currency fluctuations, international net sales were unchanged compared to the same period a year ago. These results reflected sales growth in the Asia Pacific and Latin America regions, partially offset by lower sales in the Europe region.

The company lost market share in its color cosmetics sector, dropping to 19.5 percent in the second quarter, from 22.0 percent in the year-ago period. But Kennedy is confident in the new product launches planned for the second half of this year, which he said are all on schedule. Those include Revlon 3D Extreme Mascara, Revlon Renewist Lipcolor, Revlon Age Defying Makeup Primer, Almay Pure Blends Mineral Make-Up and Almay Smart Shade line extensions.