;
Home / Knowledge / News / Information Technology / Avery Dennison Q2 sales increase 5%
Avery Dennison Q2 sales increase 5%
24
Jul '13
Avery Dennison Corporation announced preliminary, unaudited results for its second quarter 2013 ended June 29, 2013.

Unless otherwise indicated, the discussion of the company’s results is focused on its continuing operations, and comparisons are to the same period in the prior year. Results reflect classification of Office and Consumer Products (OCP) and Designed and Engineered Solutions (DES) as discontinued operations.

Highlights:

- 2Q13 Reported EPS (including discontinued operations) of $0.68
-  Adjusted EPS (non-GAAP, continuing operations) of $0.71
- 2Q13 Net sales grew approx. 4 percent to $1.55 billion
- Net sales up approx. 5 percent on organic basis
- Returned $205 million of cash to shareholders in the first half, including the repurchase of 3.5 million shares for $149 million
- Restructuring program achieved annualized savings of $105 million
- OCP and DES sale completed July 1; expect net proceeds of approx. $400 million
- Narrowed adjusted EPS guidance to $2.50 to $2.70, an increase of 28% to 38% compared to prior year

"I'm pleased to report another quarter of strong earnings growth, driven by restructuring and other productivity actions we initiated last year," said Dean Scarborough, Avery Dennison chairman, president and CEO. "Pressure-sensitive Materials continued to benefit from its leadership position in emerging markets, growth through innovation, and significant productivity gains. Retail Branding and Information Solutions delivered its fourth consecutive quarter of strong sales growth with continued margin expansion in the first half.

"We passed two significant milestones, delivering $105 million of restructuring savings and completing the sale of Office and Consumer Products and Designed and Engineered Solutions," Scarborough added. "We are committed to achieving our earnings and free cash flow targets, and to returning the vast majority of that cash to shareholders. In the first half, we distributed over $200 million to shareholders through dividends and the repurchase of 3.5 million shares."

Second Quarter 2013 Results by Segment

All references to sales reflect comparisons on an organic basis, which exclude the estimated impact of currency translation, product line exits, acquisitions and divestitures. Adjusted operating margin refers to earnings before interest expense and taxes, excluding restructuring costs and other items, as a percentage of sales.

Pressure-sensitive Materials (PSM)

PSM segment sales increased approximately 4 percent. Within the segment, Label and Packaging Materials sales increased mid-single digits. Combined sales for Graphics, Reflective, and Performance Tapes increased low single digits.

Operating margin improved 180 basis points to 10.5 percent as the benefit of productivity initiatives, higher volume, and lower restructuring costs more than offset the impact of changes in product mix. Adjusted operating margin improved 130 basis points.

Retail Branding and Information Solutions (RBIS)

RBIS segment sales increased approximately 8 percent driven by increased demand from U.S. and European retailers and brands.

Operating margin declined 20 basis points to 5.6 percent due to higher restructuring costs. Adjusted operating margin improved 110 basis points as the benefit of productivity initiatives and higher volume more than offset higher employee-related expenses.

Avery Dennison


Must ReadView All

93% remediation in Alliance-affiliated factories complete

Textiles | On 17th Dec 2018

93% remediation in Alliance-affiliated factories complete

Remediation in all the factories affiliated with the Alliance for...

Texhong Textile acquires Winnitex for HK$1350 mn

Textiles | On 17th Dec 2018

Texhong Textile acquires Winnitex for HK$1350 mn

Texhong Textile Group, one of world’s largest core spun yarn...

Courtesy: Marquee Brands

Apparel/Garments | On 17th Dec 2018

Marquee Brands acquires Dakine

Marquee Brands LLC has announced the acquisition of the Dakine brand...

Interviews View All

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Mandeep Nagi, Shades of India

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Iacopo Pardini,

Iacopo Pardini

Founded in 1953, Italian engineering company Arioli Spa started...

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Silke Brand-Kirsch, Schlegel und Partner GmbH

Silke Brand-Kirsch
Schlegel und Partner GmbH

<div>Schlegel und Partner is the market research and consultancy company...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

Leave your Comments


December 2018

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

news category


Related Categories:

Advanced Search