HBW Insight is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Avon restructuring

This article was originally published in The Rose Sheet

Executive Summary

Beauty giant announces new target of $900 mil. for its ongoing restructuring initiative. In addition to continuing efforts at product line simplification, Avon will launch a new program in the second half of 2009 to increase efficiency across its global supply chain through outsourcing and consolidating local business support functions into regional ones, it says Feb. 19. Firm is optimistic that the $300-$400 mil. project will achieve annualized savings of $200 mil. when fully implemented. "Our original restructuring program began in 2005, and over the last three years we have been dramatically transforming our cost structure and exceeding our original savings estimates as we fix the fundamentals of our business," Vice Chairman and Chief Finance and Strategy Officer Charles Cramb said. Firm's original restructuring program will deliver savings of $430 mil., by 2011-2012, Avon predicts, and an additional $200 mil. and $250 mil. in savings are expected by 2010, respectively, from product line simplification and strategic sourcing measures taken separately. In 2008, Avon reported that savings from its various restructuring programs were beginning to accrue (1"The Rose Sheet" Aug. 4, 2008, p. 9)
Advertisement

Related Content

Avon Restructuring Program Paying Off In Q2
Avon Restructuring Program Paying Off In Q2
Advertisement
UsernamePublicRestriction

Register

RS015972

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel