Avery Dennison Corp. on Wednesday reported lower, but still better-than-expected first quarter earnings, boosted by higher sales of its pressure-sensitive packaging labels.
The Pasadena labels and office supplies maker reported net income of $44.8 million (42 cents a share), compared with net income of $54.7 million (51 cents) a year earlier.
Net sales grew 7 percent to $1.66 billion, with 10 percent growth in the pressure-sensitive materials segment that now accounts for about 60 percent of its business. The company said its office and consumer product segment had a 13 percent decline, hurt by weaker demand and retail inventory reductions.
Excluding restructuring and other one-time items, the company earned 51 cents a share. Analysts surveyed by Thomson Reuters on average were expecting adjusted per-share profit of 47 cents on revenue of $1.66 billion.
“Pricing actions and productivity initiatives mitigated the impact on margins of increased raw material costs,” said Chief Executive Dean Scarborough in a statement. “We will continue to aggressively manage the impact of inflation,”
The company reaffirmed its full-year adjusted net income guidance of $3 to $3.30 per share.
Shares closed down 1 cent, or less than 1 percent, to $43.10 on the New York Stock Exchange.
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