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AVON INCOME UP 22 PERCENT BUT RESTRUCTURING CHARGE CAUSES QUARTERLY LOSS

AVON INCOME UP 22 PERCENT BUT RESTRUCTURING CHARGE CAUSES QUARTERLY LOSS
 NEW YORK, April 16 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today announced strong first quarter results, with income up 22 percent to $22.3 million. A restructuring charge of $64.4 million after tax led to a net loss of $42.1 million for the period.
 The restructuring, which by 1994 will eliminate approximately 1,000 positions worldwide and reduce annual operating expenses by at least $40 million, created a loss for the quarter. "The savings we have identified are substantial, and can be realized rapidly, so it's clearly in our best interest to launch this program immediately," said James E. Preston, Avon's chairman and chief executive officer. "Our basic business is in very good health, and our financial condition is solid. These actions will not affect our strategic commitments to expand our business operations and to enhance value for our shareholders; if anything, restructuring will support those commitments in the future." Further details on the restructuring are outlined later in this release.


First Quarter Ended March 31, 1992, Excluding Restructuring Charge:
 -- Sales of $810.2 million were up 5 percent.
 -- Net income was $22.3 million, up 22 percent.
 -- Income per share assuming full dilution was 31 cents, up
 19 percent from 26 cents in 1991.


First Quarter Ended March 31, 1992, Including Restructuring Charge:
 -- Net loss was $42.1 million versus net income of $18.3 million in
 1991.
 -- Loss per share assuming full dilution was 59 cents versus
 income per share of 26 cents in 1991.
 "Excluding the restructuring charge Avon had an excellent first quarter. Our businesses were strong in the United States and most international markets. Avon U.S. achieved healthy sales and pretax profit increases and good unit growth," said Preston.
 Productivity of Representatives was the highest since 1987, and for a first quarter the average order from customers was the highest in Avon history. Sales of skin care products and bath products set records in the first quarter.
 Avon International sales were up slightly; however, pretax profit decreased somewhat due to results in the Americas and unfavorable European currency comparisons. Brazil continues to suffer from a severe recession, and Mexico got off to a slow start but finished the quarter very strongly. Local currency sales and profit increases in Europe were somewhat offset by unfavorable currency comparisons. The Pacific region generated healthy sales and profit growth, led by strong performance in Japan.
 Avon U.S. sales increased 8 percent and pretax earnings, excluding restructuring, are up 15 percent.
 Avon International sales were up 3 percent but pretax profit, excluding restructuring, decreased 2 percent.
 Consolidated Direct Selling Units declined 4 percent. U.S. units were up 5 percent. International units were down 9 percent primarily due to Brazil.
 DETAILS OF RESTRUCTURING CHARGE
 Avon today announced a plan to restructure its worldwide manufacturing and distribution facilities. The restructuring program will lead to the closing of Avon's Springdale, Ohio, distribution facility, the closing or reconfiguring of several other plants, and the eventual elimination of more than 1,000 positions worldwide. The program will lead to operating expense reductions later this year, culminating in an expense savings level of $40 million per year beginning in 1994.
 The restructuring program results in a $96 million first quarter pretax charge. Of the total charge, $66 million will be operating cash related and only $34 million will impact cash flow in 1992.
 The restructuring charge after tax was $64.4 million or 90 cents per share, and caused a $42.1 million or a 59 cent loss for the first quarter 1992.
 Domestically, Avon has made steady gains over the last several years through work redesign, technology enhancements and a greater degree of focus on operational efficiencies. These improvements increased the company's flexibility and capacity, enabling further cost reduction. The company then undertook operational and capacity reviews of its distribution network and manufacturing operations. As a result of the reviews the Springdale, Ohio, distribution facility will be closed in mid-1993, providing significant cost savings with no deterioration in service. On the manufacturing side, the elimination of overlaps in manufacturing will also provide significant cost savings. The new configuration is quite ample to support Avon's long term growth projections.
 Internationally, Avon's restructuring effort is focused on its more mature and developed markets. More specific information is not available at this time.
 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.
 AVON PRODUCTS INC.
 Consolidated Statement of Income
 (In millions, except per share data)
 Three Months Percent
 ended March 31 Change
 1992 1991
 Net Sales $810.2 $769.6 5
 Costs, expenses and other
 Cost of sales 312.9 307.1
 Mktg., distrib., and admin.
 expenses 438.0 404.2
 Provision for restructure 96.0 --
 Interest expense 11.6 20.8
 Interest income (7.3) (16.4)
 Other expense, net 17.0 21.8
 Total costs, expenses & other 868.2 737.5 18
 Income (loss) before taxes and
 minority interest (58.0) 32.1 -
 Income taxes (benefit) (16.1) 13.7
 Income (loss) before minority
 interest (41.9) 18.4 -
 Minority int. (.2) (.1)
 Net income (loss) $(42.1) $ 18.3 -
 Income (loss) per share of
 common stock assuming full
 dilution $ (.59) $ .26 -
 Average shares outstanding
 assuming full dilution 71.92 71.41
 Note: As discussed in our 1991 reports, primary income per share figures do not provide a meaningful comparison. The first quarter of 1991 does not 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 $9.0 of preferred stock dividends. Primary loss per share for the first quarter of 1992 was $.59; it was income of $.16 for the same period in 1991.
 -0- 4/15/92
 /CONTACT: Mary Taylor, 212-546-6341, or investors contact, Ann Scavullo, 212-546-6737, both of Avon Products/
 (AVP) CO: Avon Products, Inc. ST: New York IN: HOU SU: ERN


KD -- NY002 -- 9090 04/16/92 08:49 EDT
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Date:Apr 16, 1992
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