Avery Dennison Corp. recently announced preliminary, unaudited results for its third quarter ended September 27. Net sales for the quarter grew approximately 4% to $1.56 billion, and increased approximately 3% on an organic basis.
“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,” said Dean A. Scarborough, chairman, president and CEO.
“We expect to deliver improved operational performance in the fourth quarter, with a reduction in the transition costs impacting PSM,” he said. “However, given recent top-line trends and headwinds from currency, we have modestly lowered our guidance for full-year adjusted earnings per share growth to approximately 13%. Meanwhile, we continue to execute our disciplined capital allocation strategy, reflected in the increased level of share repurchase during the past quarter.”
Sales in the Pressure-Sensitive Materials (PSM) segment increased approximately 5%, from $1,094 million to $1,157. Within the segment, Label and Packaging Materials sales increased mid-single digits. Combined sales for Graphics, Reflective, and Performance Tapes also increased mid-single digits.
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