Home / Knowledge / News / Information Technology / Avery RIS to deliver strong growth with rapidly expanding margins
Avery RIS to deliver strong growth with rapidly expanding margins
22
Oct '08
Avery Dennison Corporation reported third quarter 2008 results. "Avery Dennison showed resilience in a very challenging environment and expects to generate record free cash flow in 2008, despite the economic slowdown and rising raw material prices," said Dean A. Scarborough, president and chief executive officer of Avery Dennison. "Organic revenue growth slowed and margins contracted in the third quarter, reflecting current market conditions.

"With the continued economic slowdown, we are lowering operating costs and accelerating productivity improvement, further trimming capital expenditures and working capital, and are planning additional cost-reduction actions. We continue to invest in our longer-term growth initiatives. While we are reducing our near-term outlook, the strength of our franchises in pressure-sensitive materials, retail information services, and office products makes us highly confident in our future."

Pressure-sensitive Materials revenue increased in the quarter, driven by changes in currency rates and growth in the emerging markets. Revenue growth net of currency translation was 1.4 percent. Sales in local currency declined in the U.S. and were flat in Europe, reflecting slower economic conditions. Segment margin compression reflects raw material inflation outpacing the initial benefits of price increases, and negative product mix, partially offset by continued improvements in operational efficiency.

"Contributing to the slowdown in Pressure-sensitive revenue growth is a reduction in new product launches and redesigns by packaged-goods companies, consistent with the weak retail environment," Scarborough said. "We expect normal end-user activity to resume when consumer confidence increases. In the near term, we will continue to address cost inflation through additional price increases and productivity improvements."

Retail Information Services (RIS) - The decline in RIS revenue reflects a continued decline in the domestic retail apparel market, and further weakening in Europe. Adjusting for acquisitions, segment revenue declined 7.3 percent, net of currency translation. The cost savings from integration synergies and other productivity initiatives were more than offset by the effects of reduced fixed cost leverage, continued inflation, and incremental intangible amortization associated with acquisitions.

"Notwithstanding the extraordinary market conditions, RIS continues to build its competitive advantages of data management, global footprint, quality, and customization," said Scarborough. "When the U.S. and European apparel markets stabilize, we expect RIS to deliver strong growth with rapidly expanding margins."

Office and Consumer Products segment revenue declined primarily as a result of end-market softness in the U.S. Third Quarter year-over-year comparisons were affected by weak end-market demand, partially offset by a third-quarter benefit from the timing of back-to-school shipments. Overall, the back-to-school season was soft. Net of currency translation, organic revenue declined approximately 4 percent.


Must ReadView All

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search