Avon Expects to Achieve Its Fourth Quarter and Full-Year Earnings Targets; Company Comfortable With Analysts' EPS Estimates for 2001
Dec 7, 2000
Avon Products, Inc. (NYSE: AVP) said today that it expects to report fourth quarter and full-year earnings that are in line with Wall Street expectations and the guidance provided by the company in October. Avon also indicated that it is comfortable with analysts' estimates for earnings in 2001.
Earnings for the fourth quarter, to be reported on or around January 25, are expected to be in line with the consensus estimate of $.65 per share. For the full year, earnings are expected to be $1.87 per share, which would be a 14% increase over 1999 and solidly within the target of low to mid-teens growth set by the company at the beginning of the year.
Sales growth for the fourth quarter is expected to be in the 4-5% range, after an approximate 5% negative impact from foreign currency translation. Local currency sales are expected to be up in the high single digits, driven by continued solid growth in units and Representatives.
For the full year, sales are expected to be up approximately 7%, which is at the high end of the company's target range, despite a steady strengthening of the dollar during 2000. Sales in local currencies for the year should be up approximately 11%.
Commenting on the outlook for 2001, Avon's president and chief executive officer, Andrea Jung, said: "We intend to build on the momentum we have established this year, when we invested an additional nearly $100 million to strengthen Avon's brand image and direct selling channel. We will continue to increase strategic spending in our core business next year while also funding new growth opportunities. Equally important, we expect to deliver another year of solid sales and earnings growth in 2001."
Ms. Jung said Avon is targeting sales growth for 2001 in the mid single-digit range, despite an estimated negative foreign currency impact of 6%. Local currency sales are planned to rise double digits again, reflecting strong fundamentals in the company's worldwide direct selling operations.
Regarding the outlook for earnings next year, Ms. Jung said, "Based on everything we see right now, we're comfortable with the range of $2.10 to $2.12 per share that most analysts are estimating, even after continued healthy increases to fund our growth strategies in 2001.
"We think our goals are realistic and achievable and we are confident we will continue to deliver value for our shareholders in 2001 on top of a strong 2000," Ms. Jung added.
Avon will conduct a teleconference for investors and analysts to discuss the 2000-2001 outlook at 1:30 p.m. Eastern time today. The conference can be accessed live via the Avon Investor section of the company's web site http://www.avon.com/.
Avon is the world's leading direct seller of beauty and related products, with $5.3 billion in annual revenues. Avon markets to women in 137 countries through three million independent sales representatives. Avon product lines include such recognizable brands as Anew, Skin-So-Soft, Avon Color, Far Away, Rare Gold, Perceive, and Avon Skin Care. Avon also markets an extensive line of fashion jewelry, apparel, gifts and collectibles. More information about Avon and its products can be found on the company's award-winning website http://www.avon.com/
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
Statements in this release which are not historical facts or information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's reasonable current assumptions and expectations. Such forward-looking statements involve risks, uncertainties and other important factors which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management's expectations. Such important factors include, among others, the following: general economic and business conditions in the Company's markets; the Company's ability to implement its business strategy; the Company's ability to achieve anticipated cost savings and profitability targets; the impact of substantial currency exchange devaluations in the Company's principal foreign markets; and the effect of legal and regulatory proceedings and restrictions imposed on the Company or its operations by foreign governments. Additional information identifying such important factors is contained in the Company's Form 10K report for the year ended December 31, 1999, filed with the S.E.C. The Company undertakes no obligation to update any such forward-looking statements.
SOURCE: Avon Products, Inc.
Contact: Media - Brian T. Martin, 212-282-5103, or Victor Beaudet,
212-282-5344, or Investors - Carol Murray-Negron or Renee Johansen,
212-282-5320, all of Avon Products, Inc.
Company News On-Call: http://www.prnewswire.com/comp/079575.html or fax,
800-758-5804, ext. 079575
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