“U.S. regulators are formally investigating whether Avon broke bribery laws overseas, and the cosmetics company said it was again reassessing its strategy after quarterly profit fell far short of expectations,” Jessica Wohl reports for Reuters.
“Shares of Avon fell as much as 19.6 percent on Thursday, as analysts blasted Chairman and CEO Andrea Jung and questioned whether she and her team can come up with a turnaround plan as quickly as they hope to,” Wohl reports. “Analysts took longtime leader Jung to task during Avon’s quarterly conference call, as they have in prior quarters. ‘Why should investors believe management and the board have any control over the business at this point?’ asked Stifel Nicolaus’ Mark Astrachan, who downgraded Avon to ‘hold.’ ‘Look, the buck stops with me,’ replied Jung, who has been chief executive officer since 1999 and chairman since 2001.”
“Under Jung, Avon has turned in poor performances in key markets such as Brazil and Russia, poured tens of millions of dollars into its international bribery investigation and struggled to stem declines in a sluggish U.S. market,” Wohl reports. “New York-based Avon does most of its business outside North America. Other markets accounted for nearly 82.2 percent of revenue and 98.4 percent of profit in the third quarter.”
Wohl reports, “Avon said on Thursday that it received the subpoena from the U.S. Securities and Exchange Commission on Wednesday. The SEC is investigating the company’s contact during 2010 and 2011 with certain analysts and other representatives of the financial community, Avon said in its quarterly filing… The SEC issued a formal order of investigation of both Regulation FD matters and the Foreign Corrupt Practices Act matter that Avon itself has been looking at since June 2008.”
Wohl reports, “Jung, a magna cum laude graduate of Princeton University, was ranked sixth on Fortune magazine’s list of powerful women in U.S. business in September. She co-leads the seven-member board at Apple Inc and chairs its compensation committee. When announcing her nomination to Apple’s board in 2008, Steve Jobs referred to Jung as a ‘strong CEO and marketer.’ She has also served on General Electric Co’s board since 1998 and serves on two of its committees: nominating and corporate governance and management development and compensation. A GE spokesman said the company is not reviewing her position as a director, while an Apple spokesman did not immediately return a call for comment.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “krquet” for the heads up.]
Cut her loose. Apple has both feet firmly in the door in China by now. Whatever use she had to Apple, it’s past its freshness date.
As for the quote from Jobs, Steve must have been tripping that day.
That Electric iPhone Acid Test will get you every time!
She’s an American, is she not? Your comment sounded kind of racist to me.
You’ll just have to get over it buddy. The politically correct days are ending with that moron in the White House.
Grow the f**k up.
Not sure how smart Obama is in any “absolute” measure, but he seems to be relatively smarter than Bush Junior.
However, Obama also shows lack of education and competence in some areas which I never witness from, say, Clinton or Bush Senior (these people knew such basic things as where automobile was invented).
So your pet idiot politician is supposed to be somehow absolved of being an idiot thru a comparison to other idiots?
First, you’re merely spouting a worn out political debate tactic for idiots, proud of the idiots that they support. Second, there’s no demonstratable proof that Obama has any intelligence, or has ever exhibited any kind of independent critical or creative thinking.
Since you’re obviously a complete retard, how about bowing out of future voting and any political discussion m’kay? Just finish off that spliff, change the station back to the Cartoon Network and when she gets home, tell your mom there’s a problem with the parental controls.
Actually, this type of reply when a commentator imagines all sorts of things that were never said in the message to which he/she replies to, and makes “conclusion” that the opponent is a “retard”, is what might be called “retarded”.
I personally did not make any judgements about which president was “better” overall, so every one of these mentioned could be “idiots” in some or even many situations, while, in others, quite useful.
As a side observer, I was only making an estimation of competence of these politicians basing on the level of shamefully ignorant nonsense they proudly declaim before millions of voters.
Neither of them, or anyone else, is my “pet idiot politician” — I am sceptic towards politicians.
“but he seems to be relatively smarter than Bush Junior.”…
Relatively?!…
Of course look how long it took for a birth certificate to show up. How long does one think it will take for a college transcript of grades to be brought forward for all to see and measure against Bush Jr.?
ITs funny when people say Obama is smarter than Bush when the continuity of policy between the two administrations makes them all but indistinguishable. The only difference in the Obama administration seems to be a complete and utter disregard for the economy, the vilification of the rich, and the asinine belief that you can tax yourself back to prosperity.
@x
Why does coolfactor have to grow the f**k up? He merely raised a legitimate question. The idea that Apple had Jung on its board because of her ethnicity is stupid, so why shouldn’t the author of the original comment be called on it. Oh, and nice Obama non sequitur…
I didn’t notice anything remotely racist in Superior Being’s post. If his insinuation of Jung’s Chinese affiliation had offended you, you probably should know that, along with her great corporate acumen, education, background, she was also specifically brought in as a China specialist. Her past success in penetrating the Chinese market with Avon brand had made her a much sought after adviser; Jobs and co. highly valued that. There are plenty of articles about this when she joined the Apple board w.r.t. her China connection. Let me know if you have trouble finding the links yourself.
Finally, calling someone racist without clear proof, even on an internet forum, can be offensive and damaging to the claimer’s reputation.
@krquet
Fair enough, and a much more relevant response than the one posted by X.
There’s nothing racist in SuperiorBeing’s comment.
Your question however, and don’t get offended, is imbecile or discriminatory. Let me show you……. With your question you are implying that if Andrea were non-American then it’s OK being or intending to be racist. You see?
FYI Andrea is Canadian and yes from Chinese parents. I like her.
http://en.wikipedia.org/wiki/Andrea_Jung
Ding dong.
if you want a laugh about Andrea Jung, read this link from the now-defunct Dan Lyons blog under the nom de plume of Fake Steve Jobs:
http://www.fakesteve.net/2008/02/andrea-jung-is-making-my-life-miserable.html
No thank you.
Rarely do I find anything from Dan Lyons worthy of my click. You should read his classless and offensive “tribute” poem, after Steve’s passing, as a case in point.
Investors have wondered for a long time what Chung ever brought to the table.
Pull out the racist/sexist card if you want, Chung has never performed anywhere near the level the “6th most powerful woman” should.
As for her multiple compensation committee appointments: this illustrates everything that is wrong with corporations today.
I echo Superior Being’s comments: Cut her loose.
@ x : who needs to grow up? you!
Fact that Apple brand has been highly successful in China so far (exploded maybe is a better term), only after Ms Jung has joined Apple’s board, I think that’s all that needs be said for her efforts and reputation.
I think Apple community owes her a thank you; and perhaps a better send off (if she’s a liability now to the brand). Whatever are her current issues at Avon, she seems to have served Apple aptly, and I trust that Steve and Cook wouldn’t not have allowed someone as merely a decorative piece. She deserves better from us.
You know what happened to the Avon Lady?
Max Factor!!
=:~)
I predict she really smells good.