CORRECTED - CORRECTED-UPDATE 1-Revlon Q2 profit erodes on charges

(Corrects paragraph 5 to show that the company will benefit from cost savings of about $15 million in the second half of the year, not benefited in the second quarter)

* Q2 breakeven on per share basis

* Q2 includes $0.36/shr restructuring charges of

* US mass color cosmetics category growth slows

* Retailers reduce inventory levels

July 30 (Reuters) - Cosmetics maker Revlon Inc (REV.N) erased almost all of its second-quarter profit, weighed down by restructuring charges and unfavorable foreign currency fluctuations.

The company, controlled by financier Ronald Perelman, posted a profit of $0.2 million, or breakeven per share, which included restructuring charges of 36 cents a share. It earned $19.9 million, or 39 cents a share, a year earlier.

Net sales at Revlon, which sells its products under brands such as Charlie and Mitchum, fell 12 percent to $321.8 million.

One analyst was expecting earnings of 25 cents a share, before special items, on revenue of $307.9 million, according to Reuters Estimates.

"In the second quarter of 2009, while the mass color cosmetics category in the U.S., according to ACNielsen, continued to grow, the rate of growth slowed and certain retailers reduced inventory levels versus the year-ago period," Chief Executive Alan Ennis said in a statement.

The company, which in May had announced job cuts and forecast a weak second quarter, said results in the second half of 2009 will benefit from cost savings of about $15 million.

Revlon's shares closed at $5.66 Wednesday on the New York Stock Exchange. (Reporting by Amitha Rajan in Bangalore; Editing by Savio D'Souza)