Revlon to exit China business to cut costsDecember 31, 2013 @ 10:06 am
(AP) - Revlon said it is leaving China and cutting 1,100 jobs as part of a cost-cutting measure.
Most of the jobs cuts will be in China. Revlon's operations there make up only 2 percent of the company's sales, which have been declining.
Global sales fell 1.3 percent to $1.02 billion in the nine months through September, compared with the same period in 2012. Revenue in Asia dropped 3.5 percent to $166.8 during that time.
The departure will save the makeup company $11 million a year, Revlon said Tuesday in a regulatory filing with the U.S. Securities and Exchange Commission.
Revlon expects to take a $22 million restructuring charge, mostly this year. About $10 million of that charge is for employee severance and other benefits, and about $12 million consists of product discounts and inventory write-offs.
Besides its namesake brand of makeup and hair dye, Revlon also makes cosmetics under its Almay and SinfulColors brands.
The New York-based company has had major executive changes this year, naming a new CEO in October after Alan Ennis left. It also announced a new CFO in July after its former financial executive left to join another company.
The new chief executive, Lorenzo Delpani, came from Colomer Group, which Revlon acquired for about $660 million in October. Colomer sells hair color and other products to beauty salons.
Shares of Revlon Inc. rose 36 cents, or 1.5 percent, to $24.92 in afternoon trading Tuesday.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Can't Miss Opportunity
Danny O'Neil says this game is Seattle's best chance to gain ground against division leaders
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.