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
  • Pushin’ the Cushion

    Pushin’ the Cushion

    Christine Esposito, Associate Editor||July 26, 2016
    AmorePacific, the creator of the cushion compact, continues to improve its unique product.

  • Cozy Makes a Splash

    Cozy Makes a Splash

    Melissa Meisel, Associate Editor||July 25, 2016
    Expands reach in CVS and introduces new collection.

  • Senior Skin Care

    Senior Skin Care

    Christine Esposito, Associate Editor||July 19, 2016
    McCord Research and Product Quest Manufacturing roll out new hospital-grade skin care kits for seniors to use at home.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.