Avery Dennison Announces First Quarter 2012 Results
Avery Dennison has announced preliminary, unaudited first quarter 2012 results. As expected, first-quarter sales declined modestly on an organic basis, reflecting the slowdown in volume we began to experience in the second quarter of last year,’ said Dean Scarborough, chairman, president and CEO. Despite the lower sales and impact of raw material inflation, we increased operating profit through productivity initiatives and pricing.
We are delivering on our commitment to return more cash to our shareholders, through share repurchases and the increased dividend. For the full year, we expect to increase earnings per share and free cash flow in line with our previous guidance, and to continue returning more cash to shareholders while maintaining our strong balance sheet. Label and packaging materials sales were comparable to prior year as volume declines were offset by higher prices. Sales in graphics and reflective products grew compared to the prior year due to higher volume and pricing. Operating margin improved 50 basis points to 8.8 percent due to productivity initiatives and pricing actions taken last year to offset higher raw material costs. Excluding costs associated with restructuring, operating margin improved by 40 basis points.
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