Avery Dennison sales for Q4 FY'13 rises nearly 7%

01 Feb '14

4 min read

Pressure-sensitive Materials (PSM)

PSM segment sales increased approximately 8 percent. Within the segment, Label and Packaging Materials sales increased mid-single digits. Combined sales for Graphics, Reflective, and Performance Tapes increased low double digits.

Operating margin improved 180 basis points to 9.5 percent as the benefit of higher volume, lower restructuring costs, and productivity initiatives more than offset the impact of changes in product mix. Adjusted operating margin improved 100 basis points.

Retail Branding and Information Solutions (RBIS)

RBIS segment sales increased approximately 3 percent driven by increased demand from European retailers and brands.

Operating margin increased 460 basis points to 7.4 percent as the benefit of productivity initiatives and higher volume, as well as the impact of a prior year impairment and a gain on sale of assets, more than offset higher employee-related expenses. Adjusted operating margin improved 140 basis points.

Other

Share Repurchases

The company repurchased 6.6 million shares in 2013 at an aggregate cost of $283 million.

Discontinued Operations

On July 1, 2013, the company completed the sale of its OCP and DES businesses. Net loss per share from discontinued operations was $(0.02) in the quarter.

Income Taxes

The full-year tax rate was 33 percent, in line with expectations.

Cost Reduction Actions

In 2013, the company realized approximately $75 million in savings from the program initiated in the first half of 2012. The company incurred restructuring costs, net of gain on sale of assets, of approximately $23 million in 2013.

Outlook

In its supplemental presentation materials, “Fourth Quarter and Full Year 2013 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its 2014 financial results. Based on the factors listed and other assumptions, the company expects 2014 earnings per share from continuing operations of $2.60 to $2.90. Excluding an estimated $0.30 per share for restructuring costs and other items, the company expects adjusted (non-GAAP) earnings per share from continuing operations of $2.90 to $3.20.

Avery Dennison

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