A review of several articles addressing the grim financial outlook of the cosmetic industry.
Written in 2009; 872 words; 5 sources; MLA; $ 31.95
Paper Summary:
This paper first examines the article, "Financial Outlook Looks Grim for Cosmetic Companies," by Simon Pitman, which examines the poor earnings of the cosmetic sector due to the high price of oil causing higher costs and lower profits. The paper then examines an article by Guy Montague-Jones, entitled, "Avon Plans to Job Cuts to Reduce Long-Term Costs," which states that Avon Products is so financially burdened that they plan to cut 2,400 jobs to restructure the company. The paper ends by discussing the Regis Corporation, which is the only apparently unburdened company of the cosmetic industry.
From the Paper:
"The bad earnings in Revlon and Estee Lauder affected the cosmetic sector, and Pitman reports that part of the cosmetic sector of Avon was affected with shares dropping by 16 cents to $36.21 (par. 17). The cosmetic industry is complaining that the high price of oil has caused most major industries of manufacturing to be infected with higher costs and lower net profits. As the transportation industry passes on its costs of increasing oil prices to manufacturers, the repercussions have caused the price of commodities to rise. Manufacturing industries are being shaken from their foundations by the high price of oil that recently skyrocketed to $145 a barrel in late July 2008. "
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