Avery Dennison Posts “Solid” Third Quarter Results

October 24th, 2018 by Tara Taffera

Avery Dennison Corporation (NYSE:AVY) announced solid results for its third quarter, with strong sales growth reported for its label and graphic materials segment. These are the preliminary, unaudited results for its third quarter ended September 29, 2018.

“We had another solid quarter, in line with our expectations, with strong top-line growth and adjusted EPS up 15 percent,” said Mitch Butier, president and CEO. “Label and Graphic Materials delivered strong sales growth, while its margin declined in the face of continued inflationary pressure; we expect meaningful recovery in the fourth quarter, as recent pricing actions take full effect.

“We remain confident in the adjusted earnings guidance we communicated last quarter, despite incremental currency headwinds and continued inflationary pressure,” added Butier. “Our ability to consistently achieve our strategic and financial goals continues to demonstrate the resilience of our business and the talent of our team.”

The Label and Graphic Materials segment increased 5.0 percent; and on an organic basis, sales grew 6.4 percent, the company says. “Sales on an organic basis increased mid-single digits in Label and Packaging Materials and high-single digits in the combined Graphics and Reflective Solutions businesses,” according to the results.

The company also reported that it realized approximately $6 million in pretax savings from restructuring, net of transition costs, and recognized a net benefit in pretax restructuring charges in the amount of $6.4 million.

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