Avery Dennison Corp. said Tuesday its profit fell 46 percent in the fourth quarter, as the label maker carried out a restructuring program to cope with higher materials costs amid a weaker economy.
Pasadena-based Avery reported net income of $42.6 million (43 cents per share), compared with $79.4 million (81 cents) a year ago. Revenue fell 12 percent to $1.51 billion from $1.71 billion.
Raw material costs rose about 4 percent in 2008, said Avery, which cut about 10 percent of its workforce as part of a restructuring program.
Excluding restructuring and asset impairment charges, acquisition-related costs and other items, net income was 65 cents per share. Analysts surveyed by Thomson Reuters, on average, expected net income of 43 cents per share on revenue of $1.6 billion, higher than Avery reported.
For the full fiscal year, net income fell 12 percent to $266 million ($2.70) as revenue rose 6 percent to $6.71 billion
"We are responding to the challenges by continuing our efforts to reduce fixed costs, improve our financial flexibility, and accelerate our productivity improvements," said Chief Executive Dean A. Scarborough in a statement.
Shares of the company were down $3.26, or 12 percent, to $24.58 in morning trading on the New York Stock Exchange.
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