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.
  • Skin of Color Society Connects Experts

    Skin of Color Society Connects Experts

    Melissa Meisel, Associate Editor||January 16, 2017
    Dermatologists from across the nation share information and ideas.

  • Erasa

    Erasa's New Evangelist(a)

    January 9, 2017
    Impressed by the performance of its hero SKU, supermodel Linda Evangelista joins the company in a hand's on role.

  • Discourse on Disclosure

    Discourse on Disclosure

    Tom Branna, Editorial Director||January 6, 2017
    Transparency impacts the cleaning industry.

  • Hitting the Right Notes

    Hitting the Right Notes

    January 6, 2017
    Agilex Fragrances is the leader in the middle market fragrance category.

  • The Smell of Clean in 2017

    The Smell of Clean in 2017

    January 6, 2017
    Changing consumer lifestyles and demographics are impacting the scents found in the household cleaning category.

  • On the Edge

    On the Edge

    January 6, 2017
    Expanding beauty brands to watch in 2017