"With 9% revenue growth in the fourth quarter, we continue to feel good about the progress we are making against our turnaround plan," said Andrea Jung, chairman and CEO, Avon. "Boosted by this strong quarterly performance, full-year revenue finished ahead of our expectations. The investments we are making in our business are clearly starting to deliver results."
The 2006 fourth-quarter operating profit was unfavorably impacted by approximately $44 million of net costs to implement the current phase of the company's ongoing restructuring program, the most significant initiative being a previously announced realignment of Avon's North American distribution network. The 2005 fourth-quarter operating profit was unfavorably impacted by approximately $56 million of costs to implement the initial phase of the company's restructuring program. The 2006 quarter also included approximately $42 million of incremental costs, related to the company's previously announced Product Line Simplification program.