China exit weighs on Revlon's 4th quarter
NEW YORK (AP) — Revlon moved to a loss in its fourth quarter, pulled down mostly by charges tied to its exit from China.
For the three months ended Dec. 31, the beauty products company — whose brands include Almay, Mitchum and its namesake — lost $33.1 million, or 63 cents per share. That compares with a profit of $46.5 million, or 89 cents per share, a year earlier.
The New York company's latest quarter included a $24.1 million loss from discounted operations, which accounts for its exit from China. In the prior-year period it posted a much smaller $2.1 million loss from discontinued operations.
Revlon announced in December that it was leaving China and cutting 1,100 jobs as part of a cost-cutting measure. Its operations in China made up only 2 percent of the company's sales. Revlon said that exiting China would save it $11 million a year.
Removing the China impact and other items, Revlon Inc.'s earnings from continuing operations were 29 cents per share.
Revenue climbed 28 percent to $491 million from $383.5 million, bolstered by the addition of sales from the professional segment that came from its approximately $660 million acquisition of The Colomer Group.
Colomer sells hair color and other products to beauty salons.
For the full year, Revlon posted a loss of $5.8 million, or 11 cents per share, reversing its 2012 profit of $51.1 million, or 98 cents per share. Adjusted earnings from continuing operations were 96 cents per share.
Annual revenue increased 6 percent to $1.49 billion from $1.4 billion.
Revlon's stock declined 66 cents, or 2.6 percent, to $24.26 in morning trading on Wednesday.