Avery Dennison Corp. said Tuesday that its first-quarter earnings slipped 14 percent due to higher costs and weak U.S. retail demand.
Avery reported net income of $68.4 million (69 cents per share), compared with $79.1 million (80 cents) from the same period a year earlier. Wall Street was predicting profit of 81 cents per share, according to Thomson Financial.
The latest quarter included a charge of 11 cents per share for restructuring and impairment costs related to the integration of Paxar. Analysts normally do not include these costs in their projections.
Sales for the Pasadena-based office supply maker rose 18 percent to $1.65 billion. That was close to analysts' expectations of $1.66 billion.
The company said despite the benefit of cost-cutting initiatives, high raw material costs and weak U.S. retail demand hurt earnings in the quarter.
Avery also lowered its outlook for the year. The company now expects annual earnings of between $4 and $4.30 per share down from its forecast of $4.15 to $4.55 per share, earlier this year.
Shares in Avery closed down 3.2 percent to $50.71 Tuesday and were down another 3.7 percent to $48.75 Wednesday morning.
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