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Avery earnings sink on charges

From Times Wire Services

Adhesive label maker Avery Dennison Corp. said fiscal fourth-quarter profit slid 24% on restructuring charges and costs related to its Paxar Corp. acquisition, but adjusted results topped analyst estimates.

For the period ended Dec. 29, net income fell to $79.4 million, or 81 cents a share, from $104.7 million, or $1.04, a year earlier.

Excluding 27 cents a share in restructuring charges and Paxar-related costs, profit was $1.08 a share at the Pasadena-based company.

Analysts surveyed by Thomson Financial expected fourth-quarter net income of 96 cents a share.

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Avery Dennison purchased label-maker Paxar in June for $1.3 billion.

The company’s quarterly sales grew to $1.71 billion, up 21% and above Wall Street’s estimate of $1.68 billion.

Avery Dennison’s full-year earnings fell 19% to $303.5 million, or $3.07 a share, from $373.2 million, or $3.72.

Adjusted net income for 2007 was $3.91 a share. Annual revenue rose 13% to $6.31 billion.

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The company said its annual results were hurt by slowing U.S. retail markets and a softer market for pressure-sensitive materials.


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