NEW YORK, Feb. 7 /PRNewswire-FirstCall/ -- Avon Products, Inc. (NYSE:
AVP) today announced an 8% increase in its regular quarterly dividend. The
new dividend rate will be $.20 per common share, up from $.185 per share,
beginning with the first-quarter dividend payable March 3, 2008, to
shareholders of record February 21, 2008.
On an annualized basis, the new indicated dividend rate would increase
to $.80 per share from $.74 per share.
Avon, the company for women, is a leading global beauty company, with
$10 billion in annual revenue. As the world's largest direct seller, Avon
markets to women in more than 100 countries through 5.4 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, Advance Techniques, Avon Naturals, and
Mark. 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,"
"believe," "may," "expect," "anticipate," "intend," "planned," "potential,"
"expectation" 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 and realize the
projected benefits (in the amounts and time schedules we expect) from
our global business strategy, including our multi-year restructuring
initiatives, product mix and pricing strategies, enterprise resource
planning, customer service initiatives, product line simplification,
sales and operation planning process, strategic sourcing initiative,
zero overhead growth and cash management, tax, foreign currency
hedging and risk management strategies;
-- our ability to realize the anticipated benefits (including our
projections concerning future revenue and operating margin increases)
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 inventory obsolescence and other costs associated with our product
line simplification program;
-- our ability to effectively implement initiatives to reduce inventory
levels;
-- 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
identify and analyze acquisition candidates, and our ability to
negotiate and consummate acquisitions as well as 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, our
ability to operate using the direct selling model permitted in that
market and our ability to retain and increase the number of Active
Representatives there over a sustained period of time;
-- 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;
-- the risk of disruption in Central and Eastern Europe associated with a
change to a more rapid selling cycle with more frequent brochures;
-- a general economic downturn or recession in one or more of our
geographic regions, 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 ratings and our access to financing and ability to secure
financing at attractive rates; and
-- the impact of possible pension funding obligations, increased pension
expense and any changes in pension regulations or interpretations
thereof 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.
SOURCE Avon Products, Inc.
 back to top
Related links:
http://www.avon.com
http://www.avoncompany.com
http://www.prnewswire.com/comp/079575.html /
CONTACT:
Renee Johansen or Anita Bialkowska,
+1-212-282-5320
|
