Avery’s Profit Below Forecast

Avery Dennison Corp., the world’s biggest maker of labels, said Thursday that its per-share earnings in the first quarter were about 10 cents below the low end of a previous forecast because inventory reserves increased.

The Pasdena-based company had said earnings would be 71 cents to 78 cents a share, before costs associated with a plant closure of about 4 cents. Sales were $1.3 billion, up about 8% from a year earlier and at the low end of a forecast for 8% to 10% growth.

The higher inventory reserve relates to a new product and isn’t expected to recur the rest of the year, Avery said. The company also spent more than it expected on growth initiatives at its retail information services business.

The company was expected to earn 74 cents a share in the first quarter, according to Thomson First Call.

Avery shares fell 91 cents to $58.97 in extended trading Thursday after closing at $59.88, down 23 cents, on the New York Stock Exchange.

Avery is scheduled to report first-quarter results April 26.