Large restructuring and asset impairment charges moved Avery Dennison Corp. to a first-quarter loss, the adhesive label maker said Thursday. Adjusted for the charges, the results were still worse than Wall Street expected, although revenue was slightly better than anticipated.
The Pasadena company reported a net loss of $46.2 million (-46 cents per share), for the quarter ended April 4, compared with profit of $68.4 million (69 cents) a year ago. Revenue fell 13 percent $1.43 billion.
Excluding restructuring costs, asset impairment and lease cancellation charges and loss from debt extinguishment, Avery Dennison earned 11 cents per share. Analysts surveyed by Thomson Reuters on average expected adjusted per-share net income of 22 cents per share on revenue of $1.42 billion.
"Business conditions remain weak, particularly in the retail sector," Chief Executive Dean A. Scarborough said in a statement, adding that the sales decline began to ease after January. "We are weathering the storm, and expecting to generate solid free cash flow in 2009."
The company said it has been cutting costs and improving productivity. A restructuring program begun in the fourth quarter, which includes laying off 10 percent of its global workforce, is expected to save $150 million annually over the next two years. In the quarter, the company took $60 million of an anticipated $130 million in charges.
Avery shares were down $1.69, or 5.7 percent, to $27.76 in midday trading on the New York Stock Exchange.
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