EmailAvon Products (AVP $14.88 -0.61 ) reported second quarter adjusted earnings of $0.14 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus of $0.21, while revenues fell 9.3% year/year to $2.59 billion versus the $2.68 bln consensus. Total units declined by 4% and price/mix increased 3% during the quarter. Active Representatives were down 3%. The company also As previously reported, company has engaged outside counsel to conduct an internal investigation and compliance reviews focused on compliance with the Foreign Corrupt Practices Act ("FCPA") and related U.S. and foreign laws in China and additional countries.
The internal investigation, which is being conducted under the oversight of our Audit Committee, began in June 2008. As reported in October 2008, co voluntarily contacted the SEC and the United States Department of Justice to advise both agencies of its internal investigation. Co is continuing to cooperate with both agencies and inquiries by them, including but not limited to, signing tolling agreements, translating and producing documents and assisting with interviews. We are in discussions with the SEC and DOJ regarding mutually resolving the government investigations. There can be no assurance that a settlement will be reached or, if a settlement is reached, the timing of any such settlement or that the terms of any such settlement would not have a material adverse effect. At this point co is unable to predict the developments in, results of, or consequences of the internal investigations, compliance reviews and government investigations. In light of the fact that, among other things, these matters are still ongoing, co is unable to make an estimate of the amount or range of loss that it is reasonably possible that we could incur from an unfavorable outcome.
