AVP Avon Products Inc

Avon Reaffirms First-Quarter and Full-Year Earnings Outlook First-Quarter EPS Expected to be $.35; Revenue Forecast to Increase in the Range of 8% NEW YORK, March 17 /PRNewswire-FirstCall/ -- Avon Products, Inc. (NYSE:AVP) today reaffirmed its earnings outlook for the first quarter and full-year 2005, with earnings in the first quarter of 2005 expected to increase 13% to $.35 per share, and full-year earnings projected to be in the range of $1.95-$2.00 per share. For the first quarter, Avon said that revenue should increase in the range of 8% in dollars and 5% in local currencies, on top of the exceptional growth of 20% and 14%, respectively, posted in the first quarter of 2004. Operating profit is expected to advance in the range of 10% in the quarter, compared with growth of 40% last year. First Quarter Regional Outlook Avon said that U.S. revenue is projected to decline mid-single digits and operating profit is forecast to be down in the mid-teens versus the prior year, in line with prior guidance. In terms of international regions, Latin America's revenue is projected to increase at a double-digit rate and operating profit is forecast to grow in line with or slightly ahead of revenue. Europe's revenue and operating profit are expected to increase in the ranges of 20% and 25%, respectively, against the extraordinary growth posted last year of 38% in revenue and 84% in operating profit. The Asia Pacific region's revenue is projected to advance at a double-digit rate, with operating profit expected to improve more than 15%. Andrea Jung, Avon's chairman and chief executive officer, said, "Looking ahead, on a full-year basis, we remain very comfortable with our earlier earnings-per-share projection in the range of $1.95-$2.00. This outlook reflects our previously announced U.S. repositioning, strength in our international portfolio and continued opportunities associated with the next generation of Business Transformation." Avon management will present at the Merrill Lynch Retailing Leaders, Household Products & Cosmetics Conference in New York on Thursday, March 24, 2005. Merrill Lynch is scheduled to webcast the presentation live beginning at approximately 9:40 A.M. New York time. Those wishing to access the webcast can obtain instructions for doing so from the Avon investor website, http://www.avoninvestor.com/. The presentation will be archived at that site for two weeks. The company expects to report financial results for the first quarter on Monday, May 2, 2005. 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 release that are not historical facts or information are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 Products, Inc. ("Avon" or the "Company") 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 the Company's markets, including social, economic and political uncertainties in Latin America, Asia Pacific and Central and Eastern Europe; the Company's ability to implement its business, cash management and tax strategies and its Business Transformation initiatives; the Company's ability to achieve anticipated cost savings and its profitability and growth targets, particularly in its largest markets; the Company's ability to implement appropriate product mix and pricing strategies; the Company's 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 the Company's foreign operations and the cost of sourcing foreign products and the success of the Company's foreign currency hedging and risk management strategies; the Company's ability to implement its Sales Leadership program globally and to increase Representative productivity; the Company's ability to implement its enterprise resource planning project; the impact of possible pension funding obligations and increased pension expense on the Company's cash flow and results of operations; the impact of stock option expense pursuant to FAS 123R; the effect of legal, regulatory and tax proceedings, as well as restrictions imposed on the Company, its operations or its Representatives by foreign governments; the Company's ability to successfully identify new business opportunities; the Company's access to financing; and the Company's ability to attract and retain key executives. Additional information identifying such factors is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, filed with the SEC. The Company undertakes no obligation to update any such forward-looking statements. DATASOURCE: Avon Products, Inc. CONTACT: Media: Victor Beaudet, +1-212-282-5344, or Sharon Samuel, +1-212-282-5322, or Investor: Renee Johansen, or Rob Foresti, +1-212-282-5320 Web site: http://www.avoncompany.com/ Company News On-Call: http://www.prnewswire.com/comp/079575.html

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