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| Revlon to Expand Restructuring Program |
$30 million to $40 million in Annualized Savings Expected
Company to Take Charges Totaling Approximately $80 million
Company Comfortable with Consensus Analyst Estimates for 1999
Fellows Reaffirms Fundamental Strengths and Positive Outlook
NEW YORK, Jan. 11 /PRNewswire/ -- Revlon, Inc. (NYSE: REV) today said that
it is expanding its restructuring program, originally announced in October, to
further increase efficiencies and enhance the Company's competitive
positioning.
Additional restructuring steps announced today include manufacturing
reconfigurations, personnel realignments and reductions, the disposition of
resultant excess real estate, realignment and consolidation of regional
activities and other cost saving measures. The restructuring program is
anticipated to provide estimated annualized cost savings in the range of
$30 million to $40 million, with savings in the range of approximately
$15 million to $20 million to be achieved in 1999. In addition, Revlon has
amended its credit agreement with lenders to, among other things, reflect the
restructuring effort.
The Company expects to incur restructuring charges of up to $80 million as
part of the restructuring initiative. Approximately $40 million of the
charges will be taken in the fourth quarter of 1998, and the remainder are
expected to be taken in 1999. Approximately $65 million of the charges will
be cash.
Additionally, the Company announced that it is comfortable with the
current analysts' consensus estimates for 1999 of $1.55 per diluted share,
before restructuring charges.
Revlon's President and Chief Executive Officer, George Fellows, commented,
"We are taking major steps to re-engineer the company. By realigning our
resources to more closely match the changing needs of our customers, we are
building our business for the future." Fellows said, "We are confident in the
long-term strength of the mass color cosmetics market, and we will stay
focused on strategic initiatives designed to continue our industry leadership
position."
Fellows noted that a number of factors had negatively impacted 1998
results, including weaknesses in the international economic environment and
continued domestic inventory consolidations. In addition, Revlon brand's U.S.
market share experienced a temporary flattening, although the Company's
overall brand portfolio share has grown significantly. "We expect results in
the first half of 1999 to continue to be affected by inventory reductions and
uncertainty in the international economic environment, but we are confident
that 1999 will show improved growth after customer inventories are reduced to
targeted levels during the first half," Fellows said. "Our fundamental
strengths and our strategic initiatives make us comfortable with current
analysts' consensus earnings estimates for 1999."
Revlon continues to be an industry leader in innovation. Fellows added,
"In the first half of 1999 we expect to launch Age Defying Makeup and
Concealer Compact, EveryLash Mascara, complete the launch of ColorStay Compact
Makeup and introduce other exciting new products based on Revlon's unique,
proprietary technologies. In addition, we plan to extend our Almay line with
new products that include Skin Stays Clean Foundation, Stay Smooth Mascara and
Stay Smooth Medicated Lipcolor. Ultima II will expand its successful Glowtion
Skin Brightening franchise. In beauty care, Super Lustrous Haircolor will be
a major new introduction. We intend to reinforce these efforts by achieving
optimal cost efficiencies throughout every aspect of our organization."
Revlon is a worldwide leader in cosmetics, skin care, fragrance, personal
care and professional products. Revlon's vision is to provide glamour,
excitement and innovation through quality products at affordable prices.
Revlon's brands include Revlon(R), ColorStay(R), Revlon Age Defying, Almay(R),
Ultima II(R), Charlie(R) and Flex(R), and Creme of Nature(R) and are sold in
approximately 175 countries and territories.
Information in this press release includes forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements include, without limitation, (i) the
Company's estimate of restructuring activities and costs and resulting cost
savings; (ii) the Company's expectation of earnings per diluted share in 1999;
(iii) the Company's expectation that 1999 will show improved growth after
customer inventories are reduced to targeted levels during the first half;
(iv) the Company's intent to continue leadership in the mass color cosmetics
market; (v) the Company's expectation regarding new product launches in 1999;
and (vi) the Company's intent to achieve optimal cost efficiencies. In
addition to the factors that are described in the Company's SEC filings,
including its quarterly reports on Form 10-Q and annual reports on Form 10-K,
the following factors could cause actual results to differ materially from
those expressed in the forward-looking statements: (i) difficulties or delays
in or unexpected costs or lower than expected cost savings from the
restructuring; (ii) lower than expected earnings per diluted share in 1999;
(iii) delays in achieving or lower than expected growth after customer
inventories are reduced to targeted levels; (iv) difficulties in continuing or
the inability of the Company to continue leadership in the mass color cosmetic
market; (v) difficulties or delays in new product introductions in 1999; (vi)
difficulties or delays in achieving or the inability of the Company to achieve
optimal cost efficiencies; and (vii) actions by competitors including business
combinations, technological breakthroughs, new product offerings and marketing
and promotional successes. The Company assumes no responsibility to update
forward-looking information contained herein.
SOURCE Revlon, Inc.
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CONTACT:
Media - Michael Bulger or Mary Ann Dunnell,
212-527-5619, or Investors - Deena Fishman, 212-527-5230, all of
Revlon
