Paxar acquisition lifts label maker

Adhesive label maker Avery Dennison Corp. said its second-quarter profit rose 7% as an acquisition helped double sales in its retail information systems segment.

Net income for the three months ended June 28 rose to $92.4 million, or 93 cents a share, compared with $86.2 million, or 87 cents, a year earlier.

Excluding one-time items, the company had adjusted earnings of $1.03 a share, up from $1.01 a year earlier.

Analysts polled by Thomson Financial expected earnings of $1 a share.

Sales climbed 20% to $1.83 billion. Analysts expected sales of $1.8 billion.

Revenue in Avery Dennison’s retail information systems business rose to $438.2 million from $219.4 million, largely on contributions from Paxar Corp., which Avery Dennison bought last year for $1.34 billion.

Revenue in Avery Dennison’s office and consumer products segment fell 3%, and sales in the pressure-sensitive materials segment declined 11% to $80 million. The segment includes materials used to make labels for glass and plastic containers.

Avery Dennison also cut its outlook, and its shares fell $1.11 to $44.13 after the earnings news.