The makeup producer (REV) projects that in the third quarter it will earn $45 million, or about 22 cents a share, from continuing operations, including a gain on the sale of a small non-core business of 15 cents. Wall Street was expecting a profit of 73 cents a share, according to First Call.Sales are expected to total $540 million for the third quarter, down from $623.5 million a year earlier.
Investors couldn't cover up their disappointment: the stock sagged 4, or 12.5 percent, to 27 13/16 in recent trading.
In the fourth quarter, Revlon now expects to earn $43 million to $46 million, or 10 to 15 cents a share, from continuing operations. Sales are expected to range from $630 million to $650 million, down from $702.1 million a year earlier.
In the fourth quarter, Revlon expects to incur restructuring costs of $50 million. Revlon will close three international plants, reorganize its workforce outside the U.S., and undertake other cost-saving actions. These moves should save the company $25 million to $30 million annually, Revlon said.
Written By Jeffry Bartash