These actions are expected to improve revenue growth prospects beginning in 2007.
The company projects that revenue will be flat to up slightly in 2006 in local currencies, and forecasts revenue growth in local currencies that will average mid-single digits after 2006.
Additionally, Avon said it expects modest improvement in its operating margin beginning in 2007, after the benefits of restructuring and higher consumer investment.
Andrea Jung, Avon's chairman and chief executive officer, commented, "With this plan, they're taking very aggressive action to address the issues they faced in 2005, and to become a far more streamlined global competitor that is closer to its consumers.
By taking a comprehensive approach to their enterprise expense base and global value chain, they are identifying more efficient and effective ways of operating.
They will, in turn, reinvest much of the projected savings to fuel topline growth and improve their competitive position.
'Avon's strengths remain enviable, and they continue to believe that they have the right overall strategies and a powerful business model.
The actions they announced are intended to accelerate their transformation, and return their business to a sustainable growth trajectory in both revenue and earnings per share,'
Jung concluded.
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.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
