REVLON REDUCES FOURTH-QUARTER LOSSES
NEW YORK — Revlon Inc. narrowed its fourth-quarter net loss to $48.4 million, or 94 cents a share, from $168.7 million, or $3.29, a year ago. Analysts polled by First Call/Thompson financial were expecting the cosmetics firm, based here, to lose 27 cents for the period.
Operating income, before restructuring charges in both periods and executive separation costs, was $6.1 million in the most-recent quarter versus an operating loss of $85.7 million a year ago. Restructuring and other costs totaled $25.8 million and $18.1 million in the 2000 and 1999 fourth quarters, respectively.
Sales for the period ended Dec. 31 dropped 22.5 percent, to $321.1 million compared to $414.4 million a year ago. The year-ago period includes operating results from the worldwide professional products and the Plusbelle businesses, which were disposed of during the first half.
The exclusion of discontinued operations eases comparisons considerably. Factoring out noncomparable operations, sales dropped by a fraction of a percent, to $321.1 million in the fourth quarter.
In the domestic market, net sales from ongoing operations, on an adjusted basis, were $179.9 million in the quarter, an 8.4 percent improvement compared with $166 million in sales a year ago. International net sales fell 9.1 percent, to $141.2 million in the period compared to $155.4 million a year ago. On a constant dollar basis, the company said its international sales were down 1.4 percent.
The firm, though, had a much tighter hold on spending than a year ago. Selling, general and administrative expenses dropped 48.2 percent, to $179.5 million. This compares to a year ago when SG&A expenses were $346.6 million, including $22 million in executive separation costs.
For the year, Revlon’s losses narrowed to $127.2 million, or $2.48 a share, from $371.5 million, or $7.25, last year.
Operating income for 2000 was $67.9 million, compared to a loss of $178.5 million a year ago.
Sales for 2000 decreased 19.9 percent, to $1.49 billion from $1.86 billion in 1999.
Overall sales from continuing operations fell 5.1 percent, to $1.4 billion from $1.47 billion a year ago.
For the year, the U.S. saw sales from ongoing operations for the year fall 5.4 percent, to $841.9 million from $889.5 million a year ago. Sales in the international arena fell a more modest 4.8 percent, to $553.4 million from $581.4 million a year ago.
On a constant dollar basis, the company said international sales fell by half a percentage point.