Avery Dennison Corp.'s shares dropped 13% on concern that competition and weakening demand in the U.S. and Europe will trim third-quarter profit growth. Pasadena-based Avery Dennison makes self-adhesive stamps, labels and pressure-sensitive adhesives. Avery Dennison derived 35% to 40% of its $3.35 billion in 1997 sales from Europe. The company will have difficulty maintaining its shipment growth rate of 8% to 11% because of price-cutting by rivals and weaker economies overseas, said Merrill Lynch & Co. analyst Karen Lane Gilsenan, who rates the stock "neutral." Gilsenan cut her third-quarter estimate for the company to 53 cents a share from 56 cents and her 1999 estimates to $2.30 a share from $2.45. Avery Dennison was expected to earn 56 cents a share in the third quarter, the average estimate of analysts polled by First Call Corp. Avery Dennison shares fell $6.44 to close at $43.19 on the New York Stock Exchange. Earlier, the shares touched $42.
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