Shares of Avery Dennison Corp. dropped 11 percent on Tuesday after the Pasadena adhesive label maker warned investors that it had earned less in July and August than it had expected.
Avery Dennison said it expects July and August net income were about 15 cents to 20 cents per share below its internal forecast for those months.
The company did not affirm or update its 2008 guidance for the fiscal year but said it likely will do so after it reports its third quarter financials in late October.
Avery Dennison in July reported a 7 percent higher profit in its second quarter due to new business from an acquisition, but slashed earnings expectations for the year based on the slowing U.S. economy.
Avery shares closed down $5.62, or 11 percent, to $44.38 on the New York Stock Exchange.
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