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AVON INCOME UP 15 PERCENT FOR THE QUARTER SALES INCREASE 7 PERCENT

 AVON INCOME UP 15 PERCENT FOR THE QUARTER SALES INCREASE 7 PERCENT
 NEW YORK, July 21 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) reported a 15 percent increase in net income on a 7 percent increase in sales for the second quarter.
 Net income rose to $59.9 million from $52.1 million in the second quarter of 1991. Sales increased to $886.3 million from $828.9 million in the second quarter last year. Income per share assuming full dilution was 83 cents, up 14 percent from 73 cents in the second quarter of 1991.
 "Avon's global portfolio continues to hedge the risks of recession in individual markets or regions", said James E. Preston, Avon's chairman and chief executive officer. "In the second quarter, for instance, strength in the Americas and the U.S. offset the recession- driven performance in Europe."
 Avon International sales were up 8 percent, and pretax profit increased 2 percent over last year. International results were unfavorably affected by recessionary pressure in Europe -- particularly in Germany. Avon Americas had solid gains in sales and pretax earnings despite the continuing recession in Brazil. Sales in the Pacific Region were up for the quarter and profits were level with last year.
 Avon U.S. sales increased 7 percent and pretax income increased 11 percent in the second quarter. Avon U.S. had significant sales increases in the higher-priced skin care and jewelry categories which more than compensated for a slight decline in units sold, said Preston.
 Consolidated direct selling units for the second quarter were down 2 percent. International units were down 3 percent, and the U.S. units declined 2 percent.
 Consolidated gross margin declined primarily due to the Americas where there was a change in product mix.
 Avon's total debt was $443 million on June 30, down from $553 million at the end of second quarter last year. The company is continuing its emphasis on debt reduction and expects to further reduce debt this year.
 Six month results include the $64.4 million or 90 cents per share after tax restructuring charge announced April 16, 1992. For comparative purposes, the following highlights of six month results provide selected financial data both excluding and including the first quarter restructuring charge.
 Six Months Ended June 30, Excluding First Quarter Restructuring Charge:
 -- Sales of $1.7 billion were up 6 percent.
 -- Net income was $82.2 million, up 17 percent.
 -- Income per share, assuming full dilution, was $1.14, up 16 percent from 98 cents in 1991.
 Six Months Ended June 30, Including First Quarter Restructuring Charge:
 -- Net income was $17.8 million versus net income of $70.4 million in 1991.
 -- Income per share, assuming full dilution, was 25 cents versus 98 cents in 1991.
 "While the outlook for the year remains positive, results will depend on our continued ability to offset the risks in recessionary markets," said Preston.
 Avon is the world's leading direct seller and marketer of beauty and related products with $3.6 billion in annual revenues. Avon markets its products to women in more than 100 countries through 1.5 million independent representatives. Avon product lines include such recognizable brands as Skin-So-Soft, Moisture Therapy, Color Rich Lipstick and Imari fragrance. Avon is also the world's largest manufacturer of fashion jewelry, and markets an extensive line of gifts and collectibles. The company employs approximately 30,000 people worldwide.
 AVON PRODUCTS INC.
 Consolidated Statement of Operations
 (in millions, except per share data)
 Three months Percent Six Months Percent
 ended June 30 Change ended June 30 Change
 1992 1991 1992 1991
 Net Sales $ 886.3 $ 828.9 7 $1,696.5 $1,598.5 6
 Costs, expenses
 and other
 Cost of sales 337.0 305.3 649.9 612.4
 Mktg., distrib.,
 and admin.
 expenses 437.8 411.6 875.8 815.8
 Provision for
 restructuring
 cost -- -- 96.0 --
 Interest exp. 12.1 19.9 23.7 40.7
 Int. income (8.4) (14.9) (15.7) (31.3)
 Other expense,
 net 4.1 15.7 21.1 37.5
 Total costs,
 expenses
 and other 782.6 737.6 6 1,650.8 1,475.1 12
 Income before
 taxes and
 minority
 interest 103.7 91.3 14 45.7 123.4 (63)
 Income taxes 41.8 37.9 25.7 51.6
 Income before
 minority
 interest 61.9 53.4 16 20.0 71.8 (72)
 Minority int. (2.0) (1.3) (2.2) (1.4)
 Net income $ 59.9 $ 52.1 15 $ 17.8 $ 70.4 (75)
 Income per
 share of
 common stock
 assuming full
 dilution $ .83 $ .73 14 $ .25 $ .98 (74)
 Average shares
 outstanding
 assuming full
 dilution 71.93 71.37 71.93 71.56
 NOTE: As discussed in Avon's 1991 reports, primary income per share figures do not provide a meaningful comparison. The second quarter and six months of 1991 do not fully reflect the additional common shares issued upon the conversion of the preferred stock in June 1991. For 1991, net income used in this computation has been reduced by preferred stock dividends. Primary income per share for the second quarter of 1992 was $.83; it was $.69 in 1991. Primary income per share was $.25 for the first six months of 1992; it was $.87 for the same period in 1991.
 -0- 7/21/92
 /CONTACT: Mary A. Taylor, 212-546-6341, or Elaine Benvenuto, 212-546-6058, both of Avon/
 (AVP) CO: Avon Products Inc. ST: New York IN: HOU SU: ERN


SH -- NY018 -- 1153 07/21/92 09:27 EDT
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Date:Jul 21, 1992
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