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Avon To Build State-of-the-Art Distribution Center in Zanesville, Ohio

Facility will handle 50% of Avon's U.S. Distribution when fully operational in mid-2010

PRNewswire-FirstCall
NEW YORK
Jun 1, 2007

Avon Products, Inc. (NYSE: AVP) today announced that it has selected Zanesville, Ohio, as the location for its previously announced state-of-the-art distribution center. Avon will build the new facility on land located at Eastpointe Business Park in Zanesville, approximately 50 miles east of Columbus, Ohio.

The new facility in Zanesville will employ in the range of 500 people and will have the capacity to ship 50% of Avon's U.S. sales volume when fully operational. Avon expects to invest approximately $117 million in capital expenditures relating to the new distribution center.

"We conducted an extensive search for the location of Avon's new, state- of-the-art distribution center and determined Zanesville, Ohio is the best choice," said Elizabeth A. Smith, Executive Vice President, Avon Products, Inc., and President, Avon North America & Global Marketing. "The central location with proximity to major highways and many of our suppliers will allow us to most effectively service our Representatives in a timely, efficient manner. We are grateful to the State of Ohio, local Zanesville officials and the Zanesville-Muskingum County Port Authority for their support in our site selection process, and look forward to becoming a great neighbor."

"The State of Ohio welcomes Avon's new state-of-the-art distribution center, which will create approximately 500 new jobs for Eastern Ohio's workers and make Zanesville a major link in Avon's supply chain with the capability to distribute half of all U.S. orders," said Lt. Governor Lee Fisher, who also serves as Director of the Ohio Department of Development. "Through collaboration on the state and local level, we were able to secure another investment by an excellent company by highlighting Ohio's strengths for business investment, including our very capable workforce and expertise in the transportation and logistics and distribution industries."

In January 2007, Avon announced plans to restructure its U.S. Distribution Operations in order to enhance service to Representatives, improve operating efficiencies through new technologies, and achieve other cost savings that can be reinvested in business growth. In line with this, Avon has said that current distribution facilities in Newark, DE, and Glenview, IL will be phased out in mid-2009 and mid-2010, respectively.

Avon, the company for women, is a leading global beauty company, with almost $9 billion in annual revenue. As the world's largest direct seller, Avon markets to women in well over 100 countries through over five million independent Avon Sales Representatives. Avon's product line includes beauty products, fashion jewelry and apparel, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Avon Solutions, Advance Techniques, Avon Naturals, Mark, and Avon Wellness. Learn more about Avon and its products at http://www.avoncompany.com/.

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements in this release that are not historical facts or information are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "estimate," "project," "plan," "may," "believe," "expect," "anticipate," "intend," "planned," "potential" and similar expressions, or the negative of those expressions, may identify forward-looking statements. Such forward-looking statements are based on management's reasonable current assumptions and expectations. Such forward- looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of Avon 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 factors include, among others, the following:

   -- our ability to implement the key initiatives of our global business
      strategy, including our multi-year restructuring initiatives, product
      mix and pricing strategies, enterprise resource planning, customer
      service initiatives, product line simplification, strategic sourcing
      initiative, zero overhead growth and cash management, tax, foreign
      currency hedging and risk management strategies;
   -- our ability to realize the anticipated benefits from our multi-year
      restructuring initiatives or other strategic initiatives on the time
      schedules or in the amounts that we expect, and our plans to invest
      these anticipated benefits ahead of future growth;
   -- the possibility of business disruption in connection with our multi-
      year restructuring initiatives or other strategic initiatives;
   -- our ability to realize sustainable growth from our investments in our
      brand and the direct selling channel;
   -- the costs associated with our product line simplification program;
   -- our ability to achieve growth objectives, particularly in our largest
      markets and new and emerging markets;
   -- our ability to successfully identify new business opportunities and
      acquisition candidates, and our ability to successfully integrate or
      manage any acquired business;
   -- the effect of political, legal and regulatory risks, as well as
      foreign exchange or other restrictions, imposed on us, our operations
      or our Representatives by governmental entities;
   -- our ability to successfully transition our business in China in
      connection with the resumption of direct selling in that market and
      our ability to operate using the direct selling model permitted in
      that market;
   -- the impact of substantial currency fluctuations on the results of our
      foreign operations;
   -- general economic and business conditions in our markets, including
      social, economic and political uncertainties in Latin America, Asia
      Pacific, Central and Eastern Europe and the Middle East;
   -- a general economic downturn, information technology systems outages,
      disruption in our supply chain or manufacturing and distribution
      operations, or other sudden disruption in business operations beyond
      our control as a result of events such as acts of terrorism or war,
      natural disasters, pandemic situations and large scale power outages;
   -- the risk of product or ingredient shortages resulting from our
      concentration of sourcing in fewer suppliers;
   -- the quality, safety and efficacy of our products;
   -- the success of our research and development activities;
   -- our ability to attract and retain key personnel and executives;
   -- competitive uncertainties in our markets, including competition from
      companies in the cosmetics, fragrances, skin care and toiletries
      industry, some of which are larger than we are and have greater
      resources;
   -- our ability to implement our Sales Leadership program globally, to
      generate Representative activity, to increase Representative
      productivity, to improve Internet-based tools for our Representatives,
      and to compete with other direct selling organizations to recruit,
      retain and service Representatives;
   -- the impact of the seasonal nature of our business, changes in market
      trends, purchasing habits of our consumers and changes in consumer
      preferences, particularly given the global nature of our business and
      the conduct of our business in primarily one channel;
   -- our ability to protect our intellectual property rights;
   -- the risk of an adverse outcome in our material pending and future
      litigations;
   -- our access to financing; and
   -- the impact of possible pension funding obligations and increased
      pension expense on our cash flow and results of operations.

Additional information identifying such factors is contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2006, filed with the U.S. Securities and Exchange Commission. We undertake no obligation to update any such forward-looking statements.

First Call Analyst:
FCMN Contact: jennifer.vargas@avon.com

SOURCE: Avon Products, Inc.

CONTACT: Media, Jennifer Vargas, +1-212-282-5404, or Sharon Samuel,
+1-212-282-5322, Investors, Renee Johansen, +1-212-282-5320 or Rob Foresti,
+1-212-282-5320, all of Avon Products, Inc.

Web site: http://www.avon.com/

Company News On-Call: http://www.prnewswire.com/comp/079575.html

 
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