Avery Dennison Corp.’s second-quarter profit fell 13 percent on lower sales volume at its two largest businesses, pressure-sensitive materials and retail branding segments.
The Pasadena label company on Tuesday reported net income of $73.3 million (69 cents per share), compared with $83.8 million (78 cents) a year ago. Revenue rose 2.7 percent to $1.73 billion.
Excluding restructuring costs and other charges, per-share profit was 78 cents. Analysts surveyed by Thomson Reuters had expected the company to report adjusted per-share profit of 88 cents on revenue of $1.83 billion.
Avery Dennison last week warned that earnings would be lower than expected. For the full year, the company now expects per-share GAAP profit of between $2.25 and $2.55, and adjusted profit between $2.45 and $2.75. The company earlier expected adjusted profit of $3 to $3.30 per share.
“We are taking action to reduce costs and increase productivity through this slowdown, and we expect to regain momentum when market conditions improve,” Chief Executive Dean Scarborough said in a statement. “We remain focused on maintaining a strong balance sheet and increasing return of cash to shareholders.”
Shares closed down 31 cents, or less than 1 percent, to $33.03 on the Nasdaq. The stock is down roughly 21 percent for the year.
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