Breaking News

Avery Dennison’s sales volume dips in Q2

July 21, 2011

2 percent decline attributed to caution by CPG and apparel brands producers.

Avery Dennison Corporation (NYSE:AVY) expects to report unaudited second quarter 2011 net sales of approximately $1.7 billion, a decline from the same period last year of 2 percent, excluding the impact of currency. Unit volume was down an estimated 5 percent, driven primarily by declines in the company’s largest segments – Pressure Sensitive Materials and Retail Branding and Information Solutions. Second quarter results for the company’s Office and Consumer Products segment were in line with internal expectations.

The company expects second quarter earnings per share to be between $0.64 and $0.69, and adjusted (non-GAAP) earnings per share to be between $0.74 and $0.79. The estimates reflect lower-than-expected volume, partially offset by lower employee-related expenses. Actual results are subject to finalizing several items, including a projected tax rate for the year in the high 20 percent range. Year-to-date free cash flow through the second quarter is expected to be approximately negative $165 million, reflecting lower operating results.

According to July 19 statement from the company, Avery Dennison now expects earnings per share for the full year 2011 between $2.25 and $2.55, and adjusted (non-GAAP) earnings per share between $2.45 and $2.75, assuming net sales of between $6.8 and $6.9 billion. These estimates reflect a reduction from the company’s previous earnings per share guidance, primarily due to lower volumes in the company’s largest segments.

“In the second quarter, volume in our two largest segments was negatively impacted as consumer packaged goods companies and apparel retailers and brands became more cautious about consumer sentiment and the impact of rising retail prices to offset inflation,” says Dean A. Scarborough, Avery Dennison’s chairman, president and CEO. “We are taking actions to offset the declines, and we expect to continue the momentum shown in 2010 and earlier this year when conditions improve.”

blog comments powered by Disqus
  • Pharmaceutical Labels

    Pharmaceutical Labels

    Greg Hrinya, Associate Editor||April 8, 2016
    These specialty labels provide key information and adhere to the latest government regulations.

  • Rewinds & Unwinds

    Rewinds & Unwinds

    Greg Hrinya, Associate Editor||April 8, 2016
    Suppliers develop new ways to handle automation, faster speeds and tension control.

  • Narrow Web Profile:  Accu-Label

    Narrow Web Profile: Accu-Label

    Steve Katz, Editor||March 21, 2016
    The latest printing technologies and a commitment to superior customer service have this family-operated converter growing rapidly.