Completes Two Share Repurchase Initiatives in 2005
NEW YORK, Jan. 26 /PRNewswire-FirstCall/ -- Avon Products, Inc.
(NYSE: AVP) today announced a 6% increase in its regular quarterly dividend.
The new dividend rate will be $.175 per common share, up from $.165 per share,
beginning with the first-quarter dividend payable March 1, 2006, to
shareholders of record February 14, 2006.
On an annualized basis, the new indicated dividend rate would increase to
$.70 per share from $.66 per share.
Avon also announced that it has completed its five-year $1 billion share
repurchase program, approved in 2000, as well as the incremental $500 million
share repurchase initiative launched August 2, 2005. In total, the company
spent $728 million to repurchase shares in 2005.
Avon currently has a five-year $1 billion share repurchase program in
place, approved in 2005.
Avon is the world's leading direct seller of beauty and related products,
with $7.7 billion in annual revenues. Avon markets to women around the world
through 4.9 million independent sales Representatives. Avon product lines
include such recognizable brand names as Avon Color, Anew, Skin-So-Soft,
Avon Solutions, Advance Techniques Hair Care, Avon Naturals, Mark, 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.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,"
"believe," "expect," "anticipate," "intend," "planned," "potential" and
similar 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: general economic and business conditions in our markets, including
social, economic, political and competitive uncertainties in Latin America,
Asia Pacific, Central and Eastern Europe and the Middle East; our ability to
implement our business, cash management and tax strategies, our multi-year
restructuring initiatives and our ability to achieve anticipated benefits from
such initiatives; our ability to achieve anticipated cost savings and our
profitability and growth targets, particularly in our largest markets; our
ability to implement appropriate product mix and pricing strategies; the
impact of changes in consumer spending patterns and preferences, particularly
given the global nature of our business; our ability to replace lost sales
attributable to the repositioning of the U.S. Beyond Beauty business; the
impact of substantial currency fluctuations on the results of our foreign
operations and the cost of sourcing foreign products and the success of our
foreign currency hedging and risk management strategies; our ability to
implement our Sales Leadership program globally, to increase Representative
productivity and recruit Representatives; our ability to implement our
enterprise resource planning project; the impact of possible pension funding
obligations and increased pension expense on our cash flow and results of
operations; the impact of stock option expense pursuant to Statement of
Financial Accounting Standards No. 123(R); our ability to successfully
transition our business in China in connection with the anticipated resumption
of direct selling in that market; the effect of legal, regulatory and tax
proceedings, as well as restrictions imposed on us, our operations or our
Representatives by foreign governments; our ability to successfully identify
new business opportunities; our access to financing; and our ability to
attract and retain key personnel and executives. Additional information
identifying such factors is contained in our Annual Report on Form 10-K for
the year ended December 31, 2004, filed with the U.S. Securities and Exchange
Commission. We undertake no obligation to update any such forward-looking
statements.
SOURCE Avon Products, Inc.
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Related links:
http://www.avon.com
http://www.avoncompany.com
Company News On-Call:
http://www.prnewswire.com/comp/079575.html
CONTACT:
Media, Victor Beaudet, +1-212-282-5344,
Sharon Samuel, +1-212-282-5322, or Investors, Renee Johansen or
Rob Foresti, +1-212-282-5320, all for Avon Products, Inc.
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