02.05.13
Avery Dennison Corporation has announced preliminary, unaudited fourth quarter and full-year 2012 results. All non-GAAP financial measures referenced in this document are reconciled to GAAP in the attached tables. Unless otherwise indicated, the discussion of the company’s results is focused on its continuing operations, and comparisons are to the same period in the prior year.
“Avery Dennison delivered strong earnings improvement in 2012,” says Dean Scarborough, Avery Dennison chairman, president and CEO. “Both Pressure-sensitive Materials and Retail Branding and Information Solutions delivered solid sales growth and expanded margins, and we returned $346 million of cash to shareholders through share repurchases and an increased dividend.
“We also took actions that position us well for significant profit growth in 2013, even in a soft economic environment,” Scarborough says. “We remain committed to delivering on our long-term goals, including double-digit earnings growth and higher returns.”
Some highlights from the Q412 report include:
- Pressure sensitive materials segment sales increased approximately 6 percent. Within the segment, Label and Packaging Materials sales increased mid-single digits, as did the combined sales for other product lines (Graphics, Reflective, Performance Tapes).
- Sales increased approximately 15 percent due to higher volume.
- Operating margin declined 70 basis points to 2.3 percent due to the impact of a prior year gain on sale of a product line, as well as current year costs associated with exiting product lines and restructuring, partially offset by the benefit of higher volume. Adjusted operating margin improved by more than 12 points to 6.4 percent.
In the company’s supplemental presentation materials, “Fourth Quarter and Full-Year 2012 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its 2013 financial results. Based on the factors listed and other assumptions, the company expects 2013 earnings per share from continuing operations of $2.23 to $2.63. Excluding an estimated $0.17 per share for restructuring costs and other items, the company expects adjusted (non-GAAP) earnings per share from continuing operations of $2.40 to $2.80. The company expects free cash flow from continuing operations in the range of $275 million to $325 million. The company’s guidance includes operating results from DES and excludes the impact of share repurchase using net proceeds from divestitures.
For the full report, visit www.investors.averydennison.com.
“Avery Dennison delivered strong earnings improvement in 2012,” says Dean Scarborough, Avery Dennison chairman, president and CEO. “Both Pressure-sensitive Materials and Retail Branding and Information Solutions delivered solid sales growth and expanded margins, and we returned $346 million of cash to shareholders through share repurchases and an increased dividend.
“We also took actions that position us well for significant profit growth in 2013, even in a soft economic environment,” Scarborough says. “We remain committed to delivering on our long-term goals, including double-digit earnings growth and higher returns.”
Some highlights from the Q412 report include:
- Pressure sensitive materials segment sales increased approximately 6 percent. Within the segment, Label and Packaging Materials sales increased mid-single digits, as did the combined sales for other product lines (Graphics, Reflective, Performance Tapes).
- Sales increased approximately 15 percent due to higher volume.
- Operating margin declined 70 basis points to 2.3 percent due to the impact of a prior year gain on sale of a product line, as well as current year costs associated with exiting product lines and restructuring, partially offset by the benefit of higher volume. Adjusted operating margin improved by more than 12 points to 6.4 percent.
In the company’s supplemental presentation materials, “Fourth Quarter and Full-Year 2012 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its 2013 financial results. Based on the factors listed and other assumptions, the company expects 2013 earnings per share from continuing operations of $2.23 to $2.63. Excluding an estimated $0.17 per share for restructuring costs and other items, the company expects adjusted (non-GAAP) earnings per share from continuing operations of $2.40 to $2.80. The company expects free cash flow from continuing operations in the range of $275 million to $325 million. The company’s guidance includes operating results from DES and excludes the impact of share repurchase using net proceeds from divestitures.
For the full report, visit www.investors.averydennison.com.