Avon to beat expectations
Avon Rubber, the global supplier of respiratory protective equipment, announced today (11 October) that it expects its performance for the year to be ahead of market expectations with cost reductions and a new product launch driving the surprise improvement.
In a trading update for the year ended 30 September 2010, Avon said that for its Dairy division – which manufacturers linings and tubing for milking machines – market momentum and outsourcing cost reductions achieved in the first half of 2010 had been maintained. This, together with a successful new 'Milk-Rite' product launch has seen this division better its first half performance in the second half of 2010.
In protection and defence, full US government approval had been achieved for product from its new filter line in Cadillac which doubled production capacity for 2011.
In addition, the Avon board has renegotiated its debt facilities with its existing bankers, extending its term for a further three years and reducing the overall cost of borrowing.
