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Avon Reduces 2005 Earnings Expectations

October 21, 2005

Avon Products, Inc. announced that it is revising its full-year 2005 earnings forecast downward from previous expectations of $2.03 to $2.08 per share.
Avon attributed the expected shortfall to general weakness across each of its four regions, with continued sales shortfall in China; slower than expected improvement in Central and Eastern Europe, including Russia; and deceleration in Latin America. In addition, the company anticipates an impact on its U.S. business from Hurricane Katrina and from the effects of higher fuel costs on its representatives and their customers.
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