Avery Dennison Corp. recently announced preliminary, unaudited results for its fourth quarter and year ended December 28, 2019. Net sales for the year dipped 1.2% to approximately $7.1 billion, compared to almost $7.2 billion in 2018.
“We delivered another year of strong adjusted earnings growth in 2019, despite challenging market conditions and significant currency headwinds,” said Mitch Butier, chairman, president, and CEO. “Our focus in this environment is on protecting our margins in the base business, while driving faster-than-average growth and continuing to invest disproportionately in high value categories like RFID. We are executing well on both fronts.
“Label and Graphic Materials delivered solid volume improvement in the second half while expanding margins, recapturing share that we ceded at the tail end of the last inflationary cycle, as planned. Retail Branding and Information Solutions delivered mid-teens profit growth, reflecting both strong top-line performance and continued margin expansion. And, in a difficult year for industrial end markets, Industrial and Healthcare Materials posted modest sales growth while expanding margins significantly.
“For 2020, we are targeting continued progress toward our 2021 goals. We anticipate solid earnings growth, benefiting from our improved volume trend. We continue our relentless pursuit of productivity, triggering the next wave of restructuring savings, while investing to drive future growth and strengthen our competitive advantage, including our recently announced acquisition of Smartrac.
“We remain confident that the consistent execution of our strategies will enable us to continue to deliver for all of our key stakeholders. I would like to thank our employees for their dedication to creating superior value for our customers, investors, and the communities in which we operate through their constant focus on innovation and operational excellence.”
Reported sales in the Label and Graphic Materials segment decreased 0.4% in the 2019 fourth quarter. On an organic basis, sales grew 1.5%, driven by volume/mix, partially offset by pricing. Sales increased low-single digits on an organic basis in Label and Packaging Materials, and decreased low-single digits on an organic basis in the combined Graphics and Reflective Solutions businesses.
In Retail Branding and Information Solutions, fourth quarter reported sales increased 3.6% percent. On an organic basis, sales grew 5.2%, driven by continued strength in RFID and external embellishments.
The Industrial and Healthcare Materials segment saw reported sales decline 3.1% in the fourth quarter. On an organic basis, sales fell 1.1% percent, reflecting a mid-single digit decline in healthcare categories, partially offset by a low-single digit increase in industrial categories.
Additional details are available at www.averydennison.com.