Avon Products Inc., the world's largest direct seller of cosmetics, on Monday said second-quarter profit fell 54 percent on costs related to job cuts and other restructuring moves.

Profit was $150.9 million, or 33 cents per share, compared with a profit of $328.6 million, or 69 cents per share, a year earlier, when the company benefited from a tax benefit of 20 cents per share.

Analysts, on average, expected it to earn 35 cents per share, according to Reuters Estimates.

Revenue rose 5 percent to $2.1 billion.

Avon has pegged 2006 as a transitional year as it cuts jobs, increases advertising spending by 50 percent and works on other plans to improve sluggish results. The New York-based company has felt pressure as lower-income consumers curbed purchases and competitors roll out new skin-care products, and has responded with a mid-tier line of its own.

Second-quarter operating profit included costs related to job cuts and other restructuring moves.

When fully realized, we estimate that annualized savings from (the job cuts) will approach $200 million, a majority of the more than $300 million total benefit we expect to generate from our restructuring effort, said Andrea Jung, chairman and chief executive, in a statement.

Shares of Avon, whose brands include Anew and Skin-So-Soft, trade at about 18.7 times estimated 2007 earnings, compared with a multiple of about 17.4 for cosmetics and fragrance maker Estee Lauder Cos Inc., which sells its products at stores rather than through representatives.

(With additional reporting by Dan Wilchins)