8868--3/10/2006--AVON_PRODUCTS_INC

related topics
{acquisition, growth, future}
{operation, international, foreign}
{customer, product, revenue}
{personnel, key, retain}
{cost, operation, labor}
{product, market, service}
{system, service, information}
{condition, economic, financial}
{cost, contract, operation}
{financial, litigation, operation}
{property, intellectual, protect}
{stock, price, operating}
{product, liability, claim}
{operation, natural, condition}
Our success depends on our ability to execute fully our global business strategy. We may experience difficulties, delays or unexpected costs in achieving the anticipated benefits of our multi-year restructuring initiatives. There can be no assurance that we will be able to achieve our growth objectives. Any future acquisitions may expose us to additional risks. Our ability to conduct business, particularly in international markets, may be affected by political, legal and regulatory risks. Our business is exposed to foreign currency fluctuations. A general economic downturn or sudden disruption in business conditions may affect consumer purchases of discretionary items, including beauty and related products, which could adversely affect our business. Our success depends, in part, on the quality and safety of our products. Our information technology systems may be susceptible to outages. Our business is conducted worldwide primarily in one channel, direct selling. Our success depends, in part, on our key personnel. Our ability to anticipate and respond to market trends and changes in consumer preferences could affect our financial results. If we are unable to protect our intellectual property rights, specifically patents and trademarks, our ability to compete could be negatively impacted. We are involved, and may become involved in the future, in legal proceedings that, if adversely adjudicated or settled, could adversely affect our financial results. Third party suppliers provide the raw materials used to manufacture our CFT products, and the loss of these suppliers or a disruption or interruption in the supply chain may adversely affect our business. The loss of or a disruption in our manufacturing and distribution operations could adversely affect our business. Significant changes in pension fund investment performance or assumptions relating to pension costs may have a material effect on the valuation of pension obligations, the funded status of pension plans and our pension cost. The market price of our common stock could be subject to fluctuations as a result of many factors.

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