Avon Announces New $1 Billion Stock Buyback Program
Sep 7, 2000
Sept. 7, 2000 - Avon Products, Inc. (NYSE: AVP) today announced that its Board of Directors has authorized the repurchase of up to $1 billion of the company's common stock over the next five years.
The new repurchase program follows completion of the previous buyback plan, under which Avon repurchased approximately 34 million shares since 1997 for a total of about $1.1 billion, or an average of $31.53 per share.
Avon said the repurchases will be funded from internally generated cash flow. No new debt will be incurred as a result of the new buyback program and the company anticipates no changes in its current credit ratings of A (S&P) and A2 (Moody's).
"Avon has had -- and should continue to have -- strong operating cash flow which we intend to use to maximize shareholder value by reinvesting in the business, paying healthy dividends and repurchasing shares," said Andrea Jung, Avon's chief executive officer.
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, Women of Earth 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 10-K 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 Martin, 212-282-5103, or Victor Beaudet,
212-282-5344; or Investors, Renee Johansen, 212-282-5320, all of Avon
Company News On-Call: http://www.prnewswire.com/comp/079575.html or fax,
800-758-5804, ext. 079575
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