Avon Announces 18% Increase In Regular Quarterly Dividend; Announces New $1 Billion Dollar Stock Buyback Program
February 01 2005 - 7:01AM
PR Newswire (US)
Avon Announces 18% Increase In Regular Quarterly Dividend;
Announces New $1 Billion Dollar Stock Buyback Program NEW YORK,
Feb. 1 /PRNewswire-FirstCall/ -- Avon Products, Inc. (NYSE:AVP)
today announced an 18% increase in its regular quarterly dividend
and authorization for the repurchase of $1 billion of the company's
common stock over the next five years, following completion of its
current program. The new dividend rate will be $.165 per common
share, up from $.14 per share, beginning with the first quarter
2005 dividend payable March 1, 2005, to shareholders of record
February 14, 2005. On an annualized basis, the new indicated
dividend rate would increase to $.66 per share from $.56 per share.
Including last year's 33% increase, Avon's total two-year dividend
increase now stands at 57%. Avon also said it will repurchase $1
billion of its common stock over the next five years. The company
expects to complete its previous $1 billion stock buyback plan,
which it had launched in 2000, this year. The new buyback plan will
be funded entirely from internally generated cash flow, and the
company does not expect changes in its current credit ratings of A
(S&P) and A2 (Moody's). Andrea Jung, Avon's chairman and chief
executive officer said, "We're very pleased to increase Avon's
dividend for the 15th consecutive year and to commit to a new stock
repurchase program. These actions signify the exceptional strength
of the company's cash flow from operations, which reached $883
million in 2004, and is expected to reach $1 billion in 2005 and
$1.5 billion in 2007. Today's announcement is indicative of our
ongoing commitment to enhance shareholders' return on their
investment in Avon." 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, 2003,
filed with the SEC. The Company undertakes no obligation to update
any such forward-looking statements. DATASOURCE: Avon Products,
Inc. CONTACT: Media: Sharon Samuel, +1-212-282-5322, or Victor
Beaudet, +1-212-282-5320, or Investors: Renee Johansen or Rob
Foresti, +1-212-282-5344, all of Avon Products, Inc. Web site:
http://www.avoncompany.com/ Company News On-Call:
http://www.prnewswire.com/comp/079575.html
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