Avon Confident on 2001 Despite Latin American Currency Uncertainty

Apr 26, 2001, 01:00 ET from Avon Products, Inc.

    NEW YORK, April 26 /PRNewswire/ -- Avon Products, Inc. (NYSE:   AVP) chief
 executive officer, Andrea Jung, said today that Avon should have another
 strong year in 2001 despite currency uncertainties in Latin America.
     "Operationally, the business fundamentals in the U.S. and around the world
 are the strongest they've been in years, and even with Latin American
 currencies at their current rates, we are confident that we can meet or exceed
 the consensus estimate for earnings per share of $2.09 for the year, based on
 everything we see now," Ms. Jung said.
     "Furthermore, should the Brazilian Real decline a further 10% to the range
 of 2.50 to the dollar, and should the Argentine Peso devalue 20% from its
 current parity with the dollar - both very unlikely events in our view - the
 translation impact, combined with our current view of other currencies, would
 still allow us to grow earnings at a double-digit rate for the year, from
 $1.88 per share in 2000," she said.
     Ms. Jung made the comments in response to recent Wall Street speculation
 on the potential impact of Latin American currencies on Avon's future results.
     "Like all other companies operating in Latin America, we can't be
 definitive because currencies haven't settled and the long-term impact is not
 clear.  We operate a global portfolio of businesses in over 50 countries and
 we have demonstrated over the past decade that we can mitigate the effects of
 currency fluctuations and deliver consistently strong overall financial
 results," she said.
 Avon will report first quarter financial results tomorrow and will conduct a
 conference call at 10:00 a.m. with analysts and investors to discuss the
 results and the outlook for the rest of the year.
     The conference call will be webcast live and can accessed from the Avon
 Investor section of the company's website, http://www.avon.com.
     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, Skin-So-Soft, Avon Color, Far Away,
 Rare Gold, Perceive, and Avon Skin Care.  Avon also markets an extensive line
 of fashion jewelry, apparel, gifts and collectibles.  More information about
 Avon and its products can be found on the company's award-winning website
 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 the S.E.C.  The Company undertakes no obligation
 to update any such forward-looking statements.
 
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SOURCE Avon Products, Inc.
    NEW YORK, April 26 /PRNewswire/ -- Avon Products, Inc. (NYSE:   AVP) chief
 executive officer, Andrea Jung, said today that Avon should have another
 strong year in 2001 despite currency uncertainties in Latin America.
     "Operationally, the business fundamentals in the U.S. and around the world
 are the strongest they've been in years, and even with Latin American
 currencies at their current rates, we are confident that we can meet or exceed
 the consensus estimate for earnings per share of $2.09 for the year, based on
 everything we see now," Ms. Jung said.
     "Furthermore, should the Brazilian Real decline a further 10% to the range
 of 2.50 to the dollar, and should the Argentine Peso devalue 20% from its
 current parity with the dollar - both very unlikely events in our view - the
 translation impact, combined with our current view of other currencies, would
 still allow us to grow earnings at a double-digit rate for the year, from
 $1.88 per share in 2000," she said.
     Ms. Jung made the comments in response to recent Wall Street speculation
 on the potential impact of Latin American currencies on Avon's future results.
     "Like all other companies operating in Latin America, we can't be
 definitive because currencies haven't settled and the long-term impact is not
 clear.  We operate a global portfolio of businesses in over 50 countries and
 we have demonstrated over the past decade that we can mitigate the effects of
 currency fluctuations and deliver consistently strong overall financial
 results," she said.
 Avon will report first quarter financial results tomorrow and will conduct a
 conference call at 10:00 a.m. with analysts and investors to discuss the
 results and the outlook for the rest of the year.
     The conference call will be webcast live and can accessed from the Avon
 Investor section of the company's website, http://www.avon.com.
     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, Skin-So-Soft, Avon Color, Far Away,
 Rare Gold, Perceive, and Avon Skin Care.  Avon also markets an extensive line
 of fashion jewelry, apparel, gifts and collectibles.  More information about
 Avon and its products can be found on the company's award-winning website
 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 the S.E.C.  The Company undertakes no obligation
 to update any such forward-looking statements.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X17432628
 
 SOURCE  Avon Products, Inc.