NEW YORK (AP) — Revlon Inc. said yesterday its loss widened in the third quarter, dragged down by costs related to dumping its new cosmetics line for older women and other restructuring and severance costs.The New York-based company, which is controlled by financier Ron Perelman, lost $100.5 million, or 24 cents per share, in the three months ended September 30, versus a loss of $65.4 million, or 17 cents per share, a year ago.

Revenues rose 11 percent to $305.9 million from $275.3 million a year ago.

Analysts polled by Thomson Financial expected $286 million in revenue.

“Our results in the quarter reflect the important, and admittedly costly, decisions we have made to position Revlon for future success,” said David Kennedy, president and CEO, who abruptly replaced Jack Stahl in September, and soon after instituted a restructuring programme — its second the company announced in seven months.

The management change came amid continued losses at Revlon and a disappointing performance for Vital Radiance — a heralded line aimed at women over 50 that was supposed to help turn around Revlon’s fortunes. Vital Radiance hit retailers’ shelves in January, but retailers soon started cutting back on space after the products did not meet expectations.

A week after Kennedy took over as CEO, the former chief financial officer announced plans to cut 250 jobs, or eight percent of its work force, cancel the Vital Radiance line, eliminate certain senior executive positions and consolidate facilities.

Revlon, which has been struggling with debt and increasing competition from rival L’Oreal SA’s Maybelline line and Procter & Gamble Co.’s Cover Girl cosmetics, expects the total cost of the overhead reduction program to be approximately $29 million (euro22.74 million), which it expects to spread over the 2006 and 2007 period.

Revlon said it incurred restructuring and related charges during the third quarter totalling approximately $14 million related to severance and other termination benefits and expects to incur an additional $7 million in charges related to the programme in the fourth quarter.

Revlon, which markets such products as Charlie perfume and Almay cosmetics, incurred charges totalling approximately $49 million during the third quarter related to its decision to discontinue the Vital Radiance brand.

The charges include a provision for returns and allowances of approximately $31 million, as well as approximately $15 million for the write-off of inventories and selling and promotional materials and approximately $3 million for the write-off and accelerated amortisation of displays.

The discontinuation of Vital Radiance is expected to reduce its full year operating profit by approximately $100 million, including $92 million in the first nine months of 2006.

Revlon said that restructuring charges combined with the impact of Vital Radiance and executive severance had cut operating profits by $72 million in the third quarter and would cut profits by about $140 million for the year.