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Revlon to Close Plants, Cut 14% of Work Force

November 02, 2000|Bloomberg News

Revlon Inc. said it will close three plants and fire about 1,115 employees, or nearly 14% of its work force, in a continued effort to cut costs, as it reported another quarterly loss. Revlon, the cosmetics company controlled by financier Ronald Perelman, said its loss from operations narrowed in the third quarter to $12.6 million, or 25 cents a share, from $160.3 million, or $3.13 a share, a year ago, a better performance than the 32-cent loss analysts expected. But it was the eighth consecutive quarterly loss for the company, whose products include Ultima II, Almay and Flex shampoo. Sales dropped 22% to $351.9 million. Revlon said it will close a plant in Phoenix that employs 900 people next year and will shutter a facility in Ontario, Canada, that employs 170 in January. The New York-based company has been hurt by inventory cutbacks at retailers, competition in the U.S., slumping sales in Europe and Latin America and $1.8 billion in debt left from Perelman's 1985 takeover. Revlon said the plant closings will result in charges of $55 million to $60 million over the next 15 months and savings of $25 million to $30 million a year. Shares of Revlon closed up 19 cents at $6 on the New York Stock Exchange.

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