NEW YORK and ARMONK, N.Y., Nov. 16 /PRNewswire-FirstCall/ -- Avon
Products, Inc. (NYSE: AVP) and IBM (NYSE: IBM) today announced a strategic
multi-year business partnership by which IBM Global Services will provide
Avon with a portfolio of specialized human resources services and
technologies. Financial terms were not disclosed.
Under the partnership, IBM will provide Avon with support for certain
key HR processes, including compensation, payroll, benefits, and
performance management. IBM also will maintain HR call center support for
Avon employees in a select number of Avon countries worldwide.
In addition, IBM will provide Avon with specialized technologies,
including a Global Human Resources Information System, as well as
compensation planning, performance management and workforce analytic tools
to standardize processes and make Avon's HR function more streamlined and
efficient.
"We are pleased to partner with IBM as we continue to build a leaner,
faster and more strategic human resources organization," said Lucien
Alziari, Avon's Senior Vice President, Human Resources. "IBM's world-class
capabilities will enable Avon's HR professionals to serve our employees
with leading-edge services, and at the same time, to focus more fully on
implementing our strategic talent management and organizational development
initiatives."
Mary Sue Rogers, Vice President, Human Resources Business Process
Services, IBM, added: "Leading companies such as Avon are increasingly
using business transformation outsourcing as a tool to drive strategic
value, allowing them to become more flexible and adaptive while focusing
employees on the company's core competencies. IBM's extensive experience in
human resources services and the consumer products industry will bring
innovation and new efficiencies to Avon and its employees."
Avon, the company for women, is a leading global beauty company, with
over $8 billion in annual revenue. As the world's largest direct seller,
Avon markets to women in well over 100 countries through over five 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, Avon Solutions, Advance
Techniques, Avon Naturals, Mark, and Avon Wellness. Learn more about Avon
and its products at http://www.avoncompany.com.
For more information about IBM, please visit http://www.ibm.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, 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 our global business
strategy, including our multi-year restructuring initiatives, product
mix and pricing strategies, enterprise resource planning, customer
service initiatives, product line simplification, strategic sourcing
initiative, and cash management, tax, foreign currency hedging and risk
management strategies, and our ability to achieve anticipated benefits
from such initiatives;
* the possibility of business disruption in connection with our multi-year
restructuring initiatives;
* the costs associated with our product line simplification program;
* our ability to achieve growth objectives, particularly in our largest
markets and new and emerging markets;
* our ability to replace lost sales attributable to the repositioning of
the Beauty Plus and Beyond Beauty business in the United States;
* our ability to successfully identify new business opportunities and
acquisition candidates, and our ability 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 and our
ability to operate using the direct-selling model permitted in that
market;
* 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 possible impact of the new importation laws for ethanol-based
products in Russia;
* a general economic downturn, 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 quality, safety and efficacy of our products;
* 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, and to compete with other direct-selling organizations to
recruit, retain and service Representatives;
* the impact of 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 access to financing; and
* the impact of possible pension funding obligations and increased pension
expense 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, 2005,
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 http://www.ibm.com
http://www.prnewswire.com/comp/079575.html/
CONTACT:
Media: Sharon Samuel, +1-212-282-5322, or
Jennifer Vargas, +1- 212-282-5404, both of Avon Products, Inc.,
or Investors: Renee Johansen, Rob Foresti, +1-212-282-5320; or
Adam Emery, +1-917-472-3283, adame@us.ibm.com, of IBM
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