Shares in Avery Dennison Corp. surged more than 6 percent early Tuesday after the company reported a 24-percent slide in earnings, but still eclipsed Wall Street's expectations.
Avery reported that net income for the period ended Dec. 29 fell to $79.4 million (81 cents per share), compared with $104.7 million ($1.04), mainly due to a 27-cents-per-share restructuring charge and costs associated with its $1.3 billion acquisition of Paxar Corp. last June.
Analysts surveyed by Thomson Financial expected fourth-quarter net income of 96 cents per share, excluding the charges; Avery earned $1.08 per share, exceeding the analysts' expectations.
Sales for the Pasadena-based label and office supply manufacturer was up 21 percent to $1.71 billion -- also surpassing Wall Street's estimate of $1.68 billion.
Chief Executive Dean Scarborough said in a statement that the company's results were hurt by a slowing in domestic retail markets as well as weaker demand for pressure-sensitive labels and other office supplies. However, shares in Avery were up 6.2 percent to $50.40 in early trading Tuesday on the New York Stock Exchange.
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