Avery Dennison Has Better-Than-Expected QuarterTuesday, July 23, 2013
Avery Dennison Corp on Tuesday said that its second-quarter profit per share rose nearly 10 percent as sales picked up at both of its remaining business units.
The Pasadena labeling company reported net income of $68.8 million (68 cents a share) for the quarter ended June 30, compared with $64.2 million (62 cents) in the same period a year earlier. Revenue rose 4 percent to $1.55 billion.
Avery earlier this month completed the $500 million sale of its office supply unit and its design and engineering business to Toronto’s CCL Industries Inc. Excluding restructuring costs and other one-time items, earnings from continuing operations were 71 cents a share. Analysts surveyed by FactSet on average had expected earnings of 70 cents a share on revenue of $1.55 billion
The company narrowed its full-year adjusted earnings forecast to between $2.50 and $2.70 a share, compared with earlier guidance of $2.40 to $2.75 a share. The Wall Street consensus is $2.59 a share.
“I think we’re just being prudent,” Chief Executive Dean Scarborough during a conference call. “There’s still quite a bit of uncertainty out there, especially some markets like Western Europe.”
Shares closed up 22 cents, or less than 1 percent, to $44.62 on the New York Stock Exchange.