Avery Dennison – AVY – Delivered the strongest organic sales growth since first quarter 2011
Avery Dennison Corporation (NYSE:AVY) announced preliminary, unaudited third quarter 2012 results. All non-GAAP financial measures referenced in this document are reconciled to GAAP in the attached tables. Unless otherwise indicated, the discussion of the company’s results is focused on its continuing operations.
Third Quarter 2012 Results
- Reported EPS (including discontinued operations) of $0.57
- Reported EPS from continuing operations of $0.37
- Adjusted EPS (non-GAAP) from continuing operations of $0.53
- Net sales declined approximately 1 percent to $1.49 billion
- Sales grew approximately 6 percent on organic basis
- Repurchased 7.7 million shares for $228 million in the first nine months of 2012
- Raised 2012 EPS guidance; free cash flow guidance unchanged
- Restructuring program on track to achieve more than $100 million in annualized savings by mid-2013
“In the third quarter, we delivered the strongest organic sales growth since first quarter 2011,” said Dean Scarborough, Avery Dennison chairman, president and CEO. “Continued top-line momentum in Pressure-sensitive Materials and a rebound in Retail Branding and Information Solutions’ core business, as well as accelerating adoption of RFID, drove better than expected earnings for the quarter. As a result, we raised our guidance for full-year earnings per share.
“Our restructuring initiative is well under way, and we are on track to achieve more than $100 million in annualized savings by mid-2013,” Scarborough said. “The leaner cost structure that will result will enhance our competitive position and strengthen our ability to increase returns.
“We continued to repurchase shares, meeting our commitment to return more cash to shareholders while maintaining a strong balance sheet,” Scarborough said.
Share Repurchase
The company repurchased 2.9 million shares during the third quarter at an aggregate cost of $86 million. In the first nine months of 2012, the company repurchased 7.7 million shares at an aggregate cost of $228 million.
About Avery Dennison – AVY
Avery Dennison (AVY) is a global leader in labeling and packaging materials and solutions. AVY’s applications and technologies are an integral part of products used in every major market and industry. With operations in more than 50 countries and 30,000 employees worldwide, AVY serves customers with insights and innovations that help make brands more inspiring and the world more intelligent. Headquartered in Pasadena, California, the company reported sales from continuing operations of $6 billion in 2011.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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