Avon Expects Second Quarter E.P.S. to Meet or Exceed Consensus; Reiterates Prior Guidance For Full Year
Jun 26, 2002
In response to recent volatility in foreign exchange rates, Avon Products, Inc. (NYSE: AVP) today updated its outlook for earnings per share in the second quarter and full-year 2002.
Avon said that it is comfortable that it will meet or exceed the consensus earnings estimate of $.63 per share for the second quarter, versus $.57 per share last year. In addition, Avon reiterated its prior guidance of double-digit earnings growth, or $2.30 per share, for the full year, versus $2.09 per share in 2001, before unusual items.
Avon, which operates in over 50 countries, said the negative translation effect of weakening Latin American currencies on 2002 results is expected to be offset by significant gains from its currency hedging strategies as well as strength in other currencies.
"Operationally, our results continue to be strong," said Avon's chairman and chief executive officer, Andrea Jung. "We're looking for accelerating top line growth in local currencies to continue throughout the year, driven by strong fundamentals in our global direct selling operations. And we are confident that 2002 will be our third consecutive year of double-digit earnings growth, despite volatility in currency markets," she said.
Avon is the world's leading direct seller of beauty and related products, with $6.0 billion in annual revenues. Avon markets to women in 143 countries through 3.5 million independent sales Representatives. Avon product lines include such recognizable brand names such as Avon Color, Anew, Skin-So-Soft, Advance Techniques Hair Care, beComing and Avon Wellness. Avon also markets an extensive line of fashion jewelry and apparel. More information about Avon and its products can be found on the company's web site 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 fluctuations 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, 2001, filed with the S.E.C. The Company undertakes no obligation to update any such forward-looking statements.
SOURCE: Avon Products, Inc.
CONTACT: Media - Victor Beaudet, +1-212-282-5344; or Investors - Renee
Johansen, or Rob Foresti, +1-212-282-5320, all for Avon Products, Inc.
Web site: http://www.avon.com/
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