by Christopher Freeburn | November 1, 2012 12:25 pm
Avon (NYSE:AVP) said on Thursday that it will cut its dividend by almost 74% as part of a cost-trimming effort after reporting lower quarterly revenue and profit.
For the third quarter, the cosmetics maker said it earned $31.6 million, down sharply from $164.2 million in the same period last year. Adjusted EPS came in at 17 cents. That fell short of the 22 cents a share that Wall Street was expecting, Reuters noted.
Quarterly Revenue also dropped to $2.55 billion, down from $2.76 billion in 2011.
While the company saw 2% sales growth in Brazil, its sale fell 8% in North America and 31% in China.
The company said it planned to trim expenses by $400 million annually by 2015. Its quarterly dividend will be cut from 23 cents a share, to 6 cents a share.
Company officials indicated that restoring Avon shrinking legions of sales representatives was a top priority.
Last month, former CEO Andrea Jong stepped down from the company’s board of directors. Avon’s new CEO Sherilyn McCoy took the reins in April.
Shares of Avon rose about 1% in Thursday mid-day trading.
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