(RTTNews) - Avery Dennison Corp. (AVY: News ), a maker of pressure-sensitive materials, office and consumer products, is scheduled to release its third-quarter earnings results before the market opens today. On average, eight analysts surveyed by Thomson Reuters expect the company to post earnings of $0.57 per share for the quarter, with estimates ranging between $0.50 and $0.72 per share. Analysts' estimates typically exclude special items. Revenues for the quarter are estimated to be $1.47 billion, representing a 14.6% fall from last year.

In the previous year quarter, the Pasadena, California-based company had reported earnings of $0.81 per share on revenues of $1.72 billion.

Founded in 1935, Avery Dennison, which was formerly known as Avery International Corp., produces pressure-sensitive materials, office products, tickets, tags, labels, and other converted products. The company operates through three segments: Pressure-Sensitive Materials, Retail Information Services, and Office and Consumer Products.

In its preceding second quarter, Avery Dennison had reported a 57% slide in its profit to $39.8 million or $0.38 per share, with net sales declining 20%, reflecting challenging conditions in the retail sector. Non-GAAP net income declined to $59.3 million or $0.56 per share from $102.1 million or $1.03 per share in the year-ago quarter. Avery Dennison's net sales for the second quarter were $1.46 billion. Segment wise, Pressure-sensitive Materials reported a 19% decline in sales and Retail Information Services sales fell 24%. Office and Consumer Products also recorded a 15% fall in second quarter sales.
While announcing the second quarter results, Dean Scarborough, president and chief executive officer of Avery Dennison, had stated, "The decline in sales and profits in the second quarter reflects the continuation of a very challenging macroeconomic environment, particularly in the retail sector. I'm pleased that we maintained our gross margin in light of a substantial decline in volume. This is the result of fixed-cost reductions and pricing discipline. These actions, plus continued investment in growth initiatives, position the Company for strong profit growth when volumes improve."

Avery Dennison, which began a restructuring program in the fourth quarter to reduce costs across all business segments, recently expanded its actions to reduce fixed costs, with current target of more than $160 million in annualized savings by mid-2010. The company estimates that it will incur approximately $130 million of total restructuring charges associated with these actions, with the majority to be incurred in 2009. The company also sees approximately $40 million of carryover savings from the previously implemented actions.

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