International Growth Helps Avon Though First Quarter

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Avon’s first-quarter profit went up 16% from that of last year’s with strong international growth.

Avon Products reported earnings for the first quarter of $.36 per share, a 16% increase from last year.

According to a press release, Avon also raised its previous full-year 2005 earnings outlook to $2.12 — $2.17 per share from $1.95 — $2.00 per share, reflecting a second-quarter benefit of approximately $80 million, or about $.17 per share, relating to prior years’ tax-audit settlements.

In the U.S., as expected, revenue and operating profit in the first quarter of 2005 decreased 6% and 15%, respectively, versus the first quarter of 2004.

In Europe, first-quarter revenue and operating profit increased 17% and 26%, respectively, on top of the 38% and 84% respective gains from a year ago.

In Latin America, first-quarter revenue grew 10% in dollars and 8% in local currency as continued strong growth in Brazil and Venezuela more than offset softer sales in Mexico.

The Asia Pacific region posted first-quarter revenue growth of 10% in dollars and 8% in local currency, driven by gains in units and active Representatives of 16% and 12%, respectively.

Avon said that it expects U.S. results in the second quarter to be in line with those of the first quarter as it continues to reposition the U.S. business for improved performance in the second half of this year and a return to profitable growth in 2006.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

International Growth Helps Avon Though First Quarter
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