Avon sees stronger-than expected sales

ERJ staff report (DS)

London -- As a result of stronger than expected performance from the Avon Rubber Group, Avon's board expects full year performance to be ahead of current market expectations.

The company said of its dairy unit, "the market momentum seen and outsourcing cost reductions achieved in the first half of 2010 have been maintained in the second half. 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 & defence Avon said it has have achieved full US government approval for product from its new filter line in Cadillac which doubles production capacity for 2011.

In addition, Avon's board said it has renegotiated its debt facilities with its existing bankers, extending its term for a further three years and reducing the overall cost of borrowing.

Avon expects to report its final results on Wednesday 24th November 2010.

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Press release from Avon Rubber