Shares in Avery Dennison Corp. sank more than 5 percent Tuesday after the company said second-quarter profit fell due to costs related to its purchase of Paxar Corp. earlier this year.
Avery reported second quarter net income of $86 million (87 cents per share), a 23 percent fall from $112 million ($1.12) from the same period a year earlier, missing analysts' expectations of $1.08 per share, according to a poll conducted by Thomson Financial.
Avery credited a portion of the drop to the $1.3 billion acquisition of logistics company Paxar as well as some other items, which Avery said trimmed 15 cents per share off of the current results.
Sales for the Pasadena-based office product and technology company rose 8 percent to $1.5 billion which was in line with Wall Street's expectations.
The bright spot of the earnings was Avery's information services sales, which jumped 21 percent to $219 million. This is the sector of the company focusing on the development and mass-implementation of radio frequency identification labels, or RFID.
Shares in Avery closed down $3.62, or 5.4 percent, to $63.38 in trading Tuesday on the New York Stock Exchange.
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