- Cosmetics maker Revlon Inc posted a quarterly loss, excluding a gain from the sale of some of its Brazilian brands, and said the uncertain economic conditions may affect sales for the remainder of 2008, sending its shares down as much as 29 percent.

Revlon.com

Revlon, controlled by financier Ronald Perelman, also said a strong U.S. dollar may hurt its fourth-quarter results.

However, the company expects to improve operating margins, profitability and free cash flow in 2008, driven by cost controls and the strength of the Revlon brand.

For the third quarter, the company posted net income of $29.2 million, or 57 cents a share, compared with a net loss of $10.4 million, or 20 cents a share, a year earlier.

The results included a gain of $45.2 million from the sale of its Bozzano and some other brands in Brazil, the company said in a statement.

Sales rose 1 percent to $334.4 million on a 13 percent increase in shipments of Revlon color cosmetics driven by product launches.

But gross margin fell to 62.1 percent from 63.8 percent, mainly on higher allowances on color cosmetics and higher charges for estimated excess inventory, Revlon said.

Shares of the New York-based company, whose brands include Almay, Mitchum, Charlie and Gatineau, were down 24 percent at $9.91 in midday trade Wednesday on the New York Stock Exchange. They touched a low of $9.21 earlier in the session.

(Reporting by Dilipp S Nag in Bangalore; Editing by Vinu Pilakkott)