MAYBELLINE’S QUARTER NET DOUBLES
MEMPHIS — Despite a $2.5 million charge for costs associated with the tender offer for the company by L’Oreal SA, Maybelline Inc. reported fourth-quarter earnings more than doubled to $2.5 million, or 18 cents a share.
In the year-ago period, Maybelline earned $1.1 million, or 8 cents.
The company has entered into a definitive merger agreement in which L’Oreal’s U.S. subsidiary, Cosmair Inc., will acquire all outstanding shares of Maybelline common stock for $44 a share. The L’Oreal deal, which beat out competitive bids by Joh. A. Benckiser GMBH, is still subject to antitrust clearance by the Justice Department.
Total sales at Maybelline for the three months rose 13.9 percent to $91.2 million from $80.1 million. Sales in the Maybelline USA division rose 12.1 percent to $72.3 million, Maybelline International division sales were up 7.5 percent to $13.4 million and sales at Yardley North America soared 76.3 percent to $5.4 million.
For the full year ended Dec. 31, earnings climbed 11.5 percent to $18.5 million, or $1.34, from $16.6 million, or $1.07. Total sales were up 7.4 percent to $378 million from $351.9 million. — Fairchild News Service