Avon Products (AVP) Profits Up 16%, Shares Down 7%
February 04, 2010 6:35 PM
Beauty products manufacturer and marketer Avon Products, Inc. (NYSE: AVP) on Thursday reported 4th quarter earnings of $269.4 million, or 62 cents per share, up from $232.4 million, or 54 cents per share, for the 4th quarter of 2008, while revenue rose 13% to $3.15 billion.
According to Avon Products, restructuring costs of 6 cents per share are included in the results.
A survey of analysts by FactSet Research found that the consensus forecast had earnings of 67 cents per share on revenue of $3.14 billion.
"We are especially pleased that revenue growth was broad-based across our geographic portfolio," said Chief Executive Andrea Jung. "Our Western Europe and Central and Eastern Europe regions, when combined, represent 30% of fourth-quarter revenue and together grew more than 15% ... while Latin America delivered another quarter of double-digit growth."
Avon Products said it plans to reduce costs by $425 million in 2010 and achieve annual savings of $450 million from product line simplification and sourcing programs.
