Avery Dennison reduces outlook
Office supplies maker Avery Dennison Corp. posted a lower-than-expected quarterly profit and cut its outlook for the year because of a weak pricing environment.
Avery also said it expected cost savings from its June acquisition of Paxar Corp. to be higher and realized sooner than initially expected.
Second-quarter profit fell about 23% to $85.8 million, or 87 cents a share, from $112 million, or $1.12, a year earlier.
Excluding one-time items, Avery earned $1.02 a share, 7 cents less than what analysts polled by Reuters Estimates had expected, on average.
Chief Executive Dean Scarborough described “a relatively slow market for roll label materials in North America and a more competitive pricing environment.”
Sales rose about 8% from last year to $1.52 billion, topping the $1.5 billion that analysts had expected.
Because of the weaker-than-expected second-quarter results, Avery cut its full-year profit outlook to a range of $3.90 to $4.10 a share before other one-time items. Analysts had forecast $4.10 a share.
Shares of Pasadena-based Avery fell $3.62 to $63.38.