NEW YORK, Dec. 7 /PRNewswire-FirstCall/ -- Avon Products, Inc. (NYSE: AVP)
today announced changes to its global operating structure to bring senior
management closer to its key business geographies, strengthen global
integration, speed information flow and position the company for sustainable
growth.
Avon said that it will now manage Central and Eastern Europe and also
China as stand-alone business units due to their strategic importance and
long-term growth potential. The change increases the number of Avon's
geographic regions -- now called Commercial Business Units -- to six. The
other four are: North America; Latin America; Western Europe, Middle East and
Africa; and Asia Pacific.
In addition, Avon said that it now will manage its Brand Marketing and
Supply Chain functions as unified Global Business Units, with regional staff
in the functions reporting directly to the Brand Marketing and Supply Chain
global function leaders.
Avon said that the new structure will have dual reporting to Andrea Jung,
chairman and chief executive officer, and Susan J. Kropf, president and chief
operating officer, who will work together as the "Office of the Chairman."
The company said this new structure is the first step in its initiative to
eliminate layers in the organization, give management a clearer line of sight
to day-to-day business operations and get closer to its Representatives and
customers.
Commenting on these changes Ms. Jung said, "Our rapid growth in recent
years requires a new way of operating that improves focus on priority
geographies, reduces operating complexity, and allows us to achieve the full
benefits and efficiencies that come with increased scale. By flattening the
organization, strengthening integration and centrally managing the global
brand and supply chain functions, we will significantly increase speed and
flexibility in decision-making, become closer to our Representatives and
customers, and achieve our goal of delivering world-class products at
world-class cost."
Executive Appointments
In line with the structural changes, Avon announced the following
Commercial Business Unit leader appointments:
* Bennett R. Gallina, age 51, to Senior Vice President overseeing both the
China as well as the Western Europe, Middle East and Africa business
units, from his previous role as Senior Vice President, Asia Pacific;
* John Higson, age 47, to Senior Vice President for Central and Eastern
Europe, from his previous role as Area Vice President, Central and
Eastern Europe;
* James Wei, age 48, to Senior Vice President, Asia Pacific, from his
previous role as Vice President, New Markets and Strategic Planning for
Asia Pacific.
In North America, Elizabeth Smith, age 42, continues in her role as
Executive Vice President and President, North America and she will also
continue to oversee global marketing. In Latin America, Amilcar Melendez, age
63, continues as Senior Vice President with responsibility for that region.
The company also announced the following Global Business Unit Leader
appointments:
* John Owen, age 47, to Senior Vice President, Global Supply Chain, from
his previous role as Senior Vice President, Europe, Middle East and
Africa.
* Geralyn Breig, age 43, formerly President, Godiva International, who
joins Avon this week as Senior Vice President and Brand President,
reporting to Elizabeth Smith.
The company said that all management changes will be effective as of
January 1, 2006.
"With these management appointments, we have put in place a very talented
team of leaders with the right skills and experience to drive our business
going forward. Coupled with the comprehensive structural realignments, we have
made significant changes that we believe will position the business for
sustainable growth," Ms. Jung said.
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 report 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, or
Sharon Samuel, +1-212-282-5322, or INVESTORS: Renee Johansen or
Rob Foresti, +1-212-282-5320, all of Avon
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