Avery Dennison Q3 Profit Rises - Update

(RTTNews) - Label and packaging materials maker Avery Dennison Corp. (AVY), Friday reported an increase in profit for the third quarter, driven largely by higher sales at pressure-sensitive materials segment. Earnings for the quarter came in ahead of analysts estimates, while revenues fell short. Shares of the company are currently trading up about five percent on the NYSE.

Glendale, California-based Avery Dennison's third-quarter profit rose to $64.3 million or $0.68 per share from $46.5 million or $0.47 per share a year ago.

Adjusted earnings from continuing operations for the quarter rose to $0.77 per share from $0.69 per share last year. On average, seven analysts polled by Thomson Reuters expected earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

Avery Dennison said its third-quarter sales grew to $1.56 billion from $1.50 billion a year ago. Analysts had a consensus revenue estimate of $1.57 billion for the quarter.

Chief Executive Dean Scarborough said, "Third quarter EPS was in line with our expectations, despite a modest decline in sales in Retail Branding and Information Solutions, and higher-than-expected transition costs associated with the consolidation of Pressure-sensitive Materials operations in Europe."

Pressure-sensitive materials unit, which generates majority of revenues, rose to 6 percent to $1.16 billion, while both Retail Branding and Information Solutions business fell 2 percent.

Moving ahead, the company now expects full-year 2014 earnings from continuing operations of $2.60 to $2.65 per share, and adjusted earnings from continuing operations of $3.00 to $3.05 per share. Analysts currently expect earnings of $3.00 per share for 2014.

Earlier, Avery Dennison had projected earnings from continuing operations of $2.65 to $2.75 per share and adjusted earnings from continuing operations of $3.00 to $3.10 per share for 2014.

Avery Dennison also announced hiring Mitchell Butier as president and chief operating officer, effective November 1. Butier has been the company's senior vice president and chief financial officer since June 2010, and will continue to serve as CFO until a successor is named.

AVY is currently trading at $46.30, up $2.12 or 4.80%, on the NYSE.