Breaking News

Avon Announces New Plan

November 30, -0001

Sometimes it pays to think ahead. Avon Products, Inc. revealed that it now expects to achieve higher-than-anticipated annualized savings and benefits approaching $900 million from its original restructuring program and its product line simplification and strategic sourcing initiatives. The company also announced a new restructuring program targeting annualized savings of approximately $200 million when fully implemented.

Charles Cramb, Avon’s vice chairman, chief finance and strategy officer, said, “Our original restructuring program began in 2005, and over the last three years we have been dramatically transforming our cost structure and exceeding our original savings estimates as we fix the fundamentals of our business. Based on this progress, we expect the original restructuring program to deliver total savings of approximately $430 million by 2011-2012. We also expect to realize annualized benefits from our product line simplification and strategic sourcing initiatives in excess of $200 million and $250 million, respectively, in 2010.

“Fueled by this success, we’re also announcing that Avon will launch a new restructuring program that will target increasing levels of efficiency and organizational effectiveness across our global operations,” Mr. Cramb said. “This reflects both our constant turnaround mentality and our determination to aggressively manage our cost structure as we address the current macro-economic challenges.”

Avon said that the new restructuring program will focus on the company's global supply chain operations, realigning certain local business support functions to a more regional basis to drive increased efficiencies and streamlining transaction-related services, including selective outsourcing. Further details will be announced when initiatives are finalized.

The company also noted that the new restructuring program is targeted to achieve annualized savings of approximately $200 million upon full implementation by 2012-2013. Avon also said that the costs to implement the upcoming initiatives are expected to be in the range of $300-$400 million, with implementation anticipated to start in the second half of 2009.
  • The Good, The Bad Can Get Ugly

    The Good, The Bad Can Get Ugly

    March 28, 2017
    If you are what you eat, you may really be in trouble!

  • It’s Magic!

    It’s Magic!

    Melissa Meisel, Associate Editor||March 20, 2017
    Argan oil-infused ‘Moroccan’ lip care brand jumps from WholeFoods into CVS.

  • On the Cutler Edge

    On the Cutler Edge

    Melissa Meisel, Associate Editor||March 13, 2017
    Top brand source at Redken forecasts up-to-the-minute hair trends.

  • Supply-Side Innovations

    Supply-Side Innovations

    Tom Branna, Editorial Director||March 1, 2017
    Raw material suppliers roll up their sleeves and roll out their new products for the global cleaning industry.

  • New Faces in Familiar Places

    New Faces in Familiar Places

    Tom Branna, Editorial Director||March 1, 2017
    The American Cleaning Institute officially welcomed its new president.

  • Special Delivery

    Special Delivery

    Tom Branna, Editorial Director||March 1, 2017
    UV protection is important, but what good is that sunscreen if consumers won’t apply it?