Avon profit rises
NEW YORK |
NEW YORK (Reuters) - Avon Products Inc (AVP.N), the world's biggest direct seller of cosmetics, reported a higher quarterly profit on Tuesday, as strength in emerging and developing markets offset the impact of a weak economy and service problems in North America.
Net income was $184.7 million, or 43 cents per share, in the first quarter that ended on March 31, compared with $150 million, or 34 cents per share, in the year-earlier period.
Results included $26 million, or 4 cents per share, in costs related to the company's restructuring.
New York-based Avon has been trying to revive profits with a multiyear plan that includes weeding out less profitable items, overhauling its supply chain and cutting jobs.
The company said it still anticipates annual savings of $430 million once the plan is fully implemented, expected in 2011 or 2012.
Total revenue rose to $2.50 billion from $2.19 billion a year ago.
Avon, whose products include makeup, perfume and anti-aging skin creams, affirmed its 2008 sales outlook, saying it is on track to have full-year sales rise at a mid single-digit percentage rate. Avon also said it expects its 2008 operating margin to "approach" 14 percent.
(Reporting by Martinne Geller, editing by Maureen Bavdek))
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