May 28, 2009
Revlon to cut 400 positions, sees weak Q2; shares fall
May 28, 2009
May 28 (Reuters) - Cosmetics maker Revlon Inc (REV.N) said it would eliminate 400 positions worldwide as it seeks to reduce costs, and expects second-quarter results to be hit by retailers cutting inventory levels and foreign currency fluctuations, sending its shares down 15 percent.
Jessica Alba for Revlon
As part of the restructuring efforts, the company would also consolidate its office facilities in New Jersey. It would cut 325 current positions and about 75 open positions worldwide, Revlon said in a statement.
The company expects to record restructuring charges of $20 million, out of which $17 million will be recognized in the second quarter. It sees annualized cost savings of $30 million.
Unfavorable foreign currency fluctuations and pension expense would also weigh on net sales and profitability in the second quarter, excluding restructuring charges, compared with the year-ago period, the company said.
Separately, in a filing with the U.S. Securities and Exchange Commission, the company said pension costs in 2009 will be $25 million to $30 million, compared with its prior view of $30 million to $35 million.
Shares of the company fell 76 cents to $5.19 Thursday morning, making them the second biggest percentage loser on the New York Stock Exchange. They earlier touched a low of $5.05. (Reporting by Mihir Dalal in Bangalore; Editing by Deepak Kannan)
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