Avon earnings plunge
Avon Products Inc. reported an 82 percent drop in first-quarter earnings. Profit sank to $26 million, or 6 cents a share, from $143 million, or 33 cents, a year ago. Revenue fell 2 percent to $2.57 million from $2.62 billion a year ago, but Avon”™s profit margin fell because of higher commodity and labor costs and increased investment in brochures. Profit was also hurt by a restructuring charge. In addition, Avon is trying to hold off Coty”™s takeover advances.
“While our first-quarter operating performance remained challenged,” said Chief Financial Officer Kimberly Ross, “we are making progress toward addressing some of our operational and cost-cutting opportunities. With Sheri McCoy now on board, we are confident that her broad leadership experience and skills in managing large, complex, global organizations will help drive Avon”™s future success. We look forward to communicating further with investors about our future growth strategy at the appropriate time.”
McCoy began as CEO April 23 after a 30-year career at Johnson & Johnson.
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Back in black
Regeneron Pharmaceuticals Inc., based in Tarrytown, reported a profit of $12 million, or 12 cents a share, in the first quarter, compared with a loss of $43 million, or 49 cents a share, in the first quarter of 2011.
The company said this was the first full quarter of sales of Eylea, a drug injected into the eye to treat wet age-related macular degeneration, a leading cause of blindness in the elderly. Sales were $124 million, which Regeneron said helped it get back in the black. It doubled its U.S. sales forecast for the drug for 2012 to $500 million to $550 million from $250 million to $300 million.
Universal American, a health insurance company headquartered in Rye Brook that provides benefits to people covered by Medicare and/or Medicaid, returned to profitability in the first quarter. It reported a profit of $21 million, or 25 cents a share, compared with a loss of $32 million, or 40 cents a share, a year ago. The company said the increase in earnings was due to cost cutting and a lower medical benefit ratio, an indicator that care is being provided at a lower cost. The company raised its per share earnings estimate for the year to 64 cents to 68 cents. It completed the acquisition of APS Healthcare, which works with Medicaid agencies, on March 2. Universal”™s subsidiary, Collaborative Health Systems, partnered with physician groups to form nine Accountable Care Organizations that were approved for participation in the Medicare Shared Savings Program beginning April 1.
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Jarden earnings doubleÂ
Jarden Corp., based in Rye, reported that earnings for the first quarter doubled to $35 million, or 41 cents a share, from $19 million, or 21 cents, in the year ago quarter. Sales were up 3 percent. Jarden has a portfolio of more than 100 consumer brands, including Sunbeam, First Alert, and Mr. Coffee.
Westchester Bank net up
Westchester Bank reported first quarter profit up 30 percent, or $88,000, to $485,000. Excluding a gain on the sale of securities, profit was $463,000, up from $265,000 a year ago.
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