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 This material may not be published, broadcast, rewritten or redistributed.)
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