DOW JONES NEWSWIRES
Avon Products Inc. (AVP) unveiled plans to reduce its six
commercial business units into two major business groups, which the
beauty-products company called its biggest restructuring since
2005, as well as leadership changes in some of its key markets.
Shares were up 2.4% at $28.60 in recent premarket trading.
Through Wednesday's close, the stock is down 3.9% this year.
The company will begin a search for a new chief financial
officer, as current CFO Charles Cramb will be heading the company's
newly formed developed-market segment. That business will include
North America and Western Europe, as well as recent acquisitions
Silpada and Liz Earle. Cramb, who joined Avon in 2005, is credited
with leading its restructuring and acquisition strategies.
Charles Herington, executive vice president of its Latin America
and Central and Eastern Europe business, will head the newly formed
developing-market group, which will include those regions as well
as Asia Pacific and the critical China market. He joined Avon in
2006 from AOL Latin America, where he was president and CEO.
The changes come slightly more than two weeks after the
beauty-products company reported disappointing fourth-quarter
results amid sluggish sales growth and declining margins. Amid
major missteps in Brazil and Russia, Avon's two biggest
international markets, some analysts have been pushing for big
changes in day-to-day operations, including firings.
The move also comes during two days of investor presentations at
an annual industry conference in Boca Raton, Fla., where investors
were expected to be interested in hearing details about cost cuts
at a number of consumer-products companies to help offset rising
commodities costs and continuing price wars to attract frugal
consumers.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com