Breaking News

Avon Boosts Earnings Outlook

November 14, 2005

Avon Products Inc., New York, raised its earnings estimates slightly, citing stronger-than-expected operating re-sults in the U.S. and Europe. Avon executives said the company now expects earnings before items of $2.31 a share for 2002, up a penny from its Oct. 18 estimate. The new estimate compares with $2.09 a share before items in 2001. Last year, items reduced reported earnings by $0.24 a share, to $1.85 a share.
For the fourth quarteer, Avon anticipates earnings before items of $0.79 a share. Sales are expected to be up 4-5%, thanks to 8-9% growth in sales of beauty products, driven by double-digit increases in the U.S. Avon executives said the growth reflects the company’s strategy to focus resources on its beauty business.
Solid profit growth in the quarter for international operations is expected, with double-digit gains in Europe and Asia more than offsetting an estimated 10% profit decline in Latin America, where currency translation continues to hurt results.
For 2003, Avon forecasted “significant” improvement in margins as benefits of its restructuring initiatives acelerate. The company will again target double-digit earnings a share growth before items for 2003. Cash flow from operations is forecast to be within the company’s predicted range of $500-550 million annually.
“Looking ahead, we are confident in the future of our business,” said Andrea Jung, Avon’s chairman and chief executive, in a statement.
blog comments powered by Disqus
  • Start Stuffing The Ballot Box (Again)!

    Start Stuffing The Ballot Box (Again)!

    June 28, 2016
    Vote on the finalists in Happi's reader's choice Anti-Aging Product of the Year contest!

  • What

    What's Next for the UK?

    Sarah Boumphrey, Euromonitor International||June 27, 2016
    Euromonitor weighs in on how Brexit could impact consumer product companies.

  • The Future of Innovation

    The Future of Innovation

    Nancy Jeffries, Contributing Editor||June 27, 2016
    Fashion Institute of Technology graduate students tackle a far-reaching topic for their Capstone project.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.