Avery Dennison Opens Up About Q3

November 4th, 2020 by Emmariah Holcomb

Avery Dennison Corporation (Avery Dennison) states its revenue was better than anticipated in its preliminary, unaudited third quarter results, which ended September 26, 2020.Avery Dennison also provided an update related to the impact of the COVID-19 pandemic on the company.

“Revenue came in significantly better than we anticipated at the start of the quarter, which, combined with our cost reduction actions, enabled us to deliver strong earnings growth and free cash flow,” said Mitch Butier, Avery Dennison chairman, president and CEO. “All three of our operating segments expanded their adjusted operating margins compared to last year, despite lower sales, as demand improved sequentially.”

COVID-19 Update

According to the company, the safety and well-being of its employees has been and will continue to be a top priority during the global health crisis. Avery Dennison noted it has taken steps to help ensure employee safety, as well as help mitigate the financial impact to employees resulting from mandated facility closures and necessary layoffs.

The company has identified approximately 350 confirmed COVID-19 cases among its more than 30,000 employees. The company continues to adapt its safety protocols based on new information, and, with government-mandated lockdowns having been lifted, is focused on ensuring a safe return to the workplace when it believes it is appropriate to do so.

Following the second quarter’s decline in demand, the company’s volumes have generally been improving faster than expected, according to the company’s financial report.

Operationally, all manufacturing sites remained open during the third quarter. Throughout the pandemic, disruptions to the company’s supply chain have been negligible.

In light of the near-term demand decline impacting some businesses, in addition to continuing its focus on long-term strategic restructuring, the company has undertaken temporary actions to reduce costs, including reductions in travel and other discretionary spending, reduced usage of overtime and temporary employees, delays of merit increases, and furloughs.

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