New York, N.Y. (
foresees strong savings and business momentum, after a jump in fourth-quarter earnings.
Avon announced that it's expecting to achieve $350 million and $75 million in annual savings from initiatives associated with the company's 2005 and 2009 restructuring programs, respectively, and says its momentum should continue despite ongoing economic uncertainties around the world and currency devaluation in Venezuela.
The company is optimistic about another year of at least mid-single-digit local-currency revenue growth, and expects operating margin to improve on a path to reaching the mid-teens level by 2013.
Avon reported net income of $269 million, or 62 cents a share in the fourth quarter, compared with $232 million, or 54 cents a share the year before. Avon reported revenue of $3.2 billion, 13% higher than a year ago. Beauty sales grew 15%.
Analysts surveyed by Thomson Reuters had expected fourth quarter earnings of 68 cents a share on revenue of $3.16 billion.
-- Reported by Andrea Tse in New York
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