-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HY8FLVyXeAdHRDPLhos6bSgfY5+SxctgD3BiVDehLnS7EywvNL0WfqjoUZE239n7 yRKVAOyQdMSylIl25UF4Dw== 0000950103-01-501353.txt : 20010906 0000950103-01-501353.hdr.sgml : 20010906 ACCESSION NUMBER: 0000950103-01-501353 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010904 ITEM INFORMATION: Other events FILED AS OF DATE: 20010905 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AVON PRODUCTS INC CENTRAL INDEX KEY: 0000008868 STANDARD INDUSTRIAL CLASSIFICATION: PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844] IRS NUMBER: 130544597 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04881 FILM NUMBER: 1731564 BUSINESS ADDRESS: STREET 1: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 9149352588 MAIL ADDRESS: STREET 1: PECK & MIDLAND AVE STREET 2: PECK & MIDLAND AVE CITY: RYE STATE: NY ZIP: 10580 8-K 1 sept0401_8k.txt ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 4, 2001 AVON PRODUCTS, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) New York 1-4881 13-0544597 - ---------------- ------------------------ ---------------------- (State or Other (Commission File Number) (IRS Employer Jurisdiction of Identification No.) Incorporation) 1345 Avenue of the Americas New York, New York 10105-0196 - ---------------------------------------- ---------------------- (Address of Principal Executive Offices) (Zip Code) (212) 282-5000 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ================================================================================ ITEM 5. Other Events. On September 4, 2001, Avon Products, Inc., a New York corporation, issued a press release updating its previous earnings guidance for its third quarter and full-year 2001. A copy of the press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference herein. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AVON PRODUCTS, INC. Dated: September 5, 2001 By: /s/ Gilbert L. Klemann, II --------------------------------- Name: Gilbert L. Klemann, II Title: Senior Vice President, General Counsel and Secretary 3 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ----------- --------------------------------- 99.1 Press Release of Avon Products, Inc., dated September 4, 2001 4 EX-99.1 3 sept0401_ex9901.txt EXHIBIT 99.1 NEWS RELEASE MEDIA CONTACT: INVESTOR CONTACT: Brian T. Martin Carol Murray-Negron (212) 282-5103 Renee Johansen (212) 282-5320 Victor Beaudet (212) 282-5344 AVON SAYS STRONG RESULTS ARE CONTINUING -------------------------------------------- Third Quarter And Full-Year Are On Track To Meet Expectations NEW YORK, N.Y., September 4, 2001 -- Avon Products, Inc. (NYSE:AVP) said today that its strong financial results are continuing and it expects earnings per share for the third quarter and full-year 2001 to be in line with the company's previous guidance and Wall Street expectations. The company said it remains comfortable with the consensus estimate for earnings per share of $.44 in the third quarter and $2.09 for the full year, excluding the benefit from its recent settlement agreement with Sears and possible charges for other items under consideration. Last year, Avon earned $.38 per share in the third quarter and $1.88 for the full year, excluding one-time items. Avon said sales growth continues to accelerate and should be in the range of 5-6% in the quarter. Local currency sales growth is expected to be 11-12%, which is 2-3 points higher than the growth rate reported for the first half of 2001. Sales are being driven by double-digit increases in units and active Representatives, with all geographic regions contributing to the gains. In addition, Avon said sales of beauty products continue to outpace overall sales growth, for the ninth consecutive quarter. Commenting on the outlook for the quarter and year, Avon's chief executive officer, Andrea Jung, said: "We are particularly pleased that the momentum in our business continues to accelerate as the year progresses. The U.S. is having one of the strongest performances in recent years, and all international regions are growing sales and operating profits at double-digit rates in local currencies. We are clearly demonstrating the strength and resiliency of our core business, even during this period of economic uncertainty." Ms. Jung will host a conference call for investors today at 1:00 p.m. New York time to discuss the outlook for the quarter. The call will be webcast live on the Investor section of the company's website, www.avon.com. Avon said the U.S. and Europe are expected to generate particularly strong sales and profit growth in the quarter. Sales in the U.S. are estimated to be up 7%, the highest third-quarter 2 growth rate since 1996. Operating profit for the U.S. is expected to increase at a double-digit percentage rate and operating margin should be at the highest third-quarter level in over a decade. Avon said the U.S. is benefitting from continued historically high growth in the number of active Representatives - estimated to be up 3% in the quarter - as well as the highly successful launch of Avon Wellness, a new product category aimed at health-conscious women. Europe is forecast to grow sales at a low to mid-teens percentage rate and operating profits are expected to be up in the 25% range, despite the strength of the U.S. dollar against most local currencies. European results continue to be driven by growth rates in excess of 50% in Central and Eastern Europe and Russia, as well as a strong performance in the U.K., the largest market in the region. Avon said Latin America is also expected to post gains in the third quarter, despite weak currencies and economic challenges in some markets. Countries in the northern part of the region - Mexico, Venezuela and Central America - continue to grow sales and profits at percentage rates in the high- teens, which is more than offsetting lower dollar-denominated results in Brazil due to the significant decline in the value of the local currency against the dollar. In local currency terms, Avon's business in Brazil continues to be robust. In addition, Argentina is expected to post a mid single-digit sales increase - its first increase this year - despite a continued recessionary economy. 3 The Pacific region is seeing accelerated growth versus the first half, with local currency sales and operating profits expected to be up double digits in the quarter. Dollar-denominated results are expected to be down slightly versus last year due to the strength of the U.S. dollar. Avon is the world's leading direct seller of beauty and related products, with $5.7 billion in annual revenues. Avon markets to women in 139 countries through 3.4 million independent sales representatives. Avon product lines include such recognizable brands as Anew, Avon Color, Skin-So-Soft, Advance Techniques Hair Care, beComing 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 award-winning web site http://www.avon.com. # # # Cautionary Statement under the Private Securities Litigation Reform Act of 1995 Statements in this release, which 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 important factors which may cause the actual results of 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 important factors include, among others, the following: general economic and business conditions in the Company's markets; the Company's ability to implement its business strategy; the Company's ability to achieve anticipated cost savings and profitability targets; the impact of substantial currency exchange fluctuations in the Company's principal foreign markets; and the effect of legal and regulatory proceedings and restrictions imposed on the Company or its operations by foreign governments. Additional information identifying such important factors is contained in the Company's Form 10-K report for the year ended December 31, 2000, filed with 4 the S.E.C. The Company undertakes no obligation to update any such forward-looking statements. 5 -----END PRIVACY-ENHANCED MESSAGE-----