Avery Dennison Corp. (AVY), 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.
At the time of its second-quarter results announcement, the company had lowered its quarterly dividend to $0.20 per share from $0.41 per share. Scarborough then said, "The Board is committed to paying a dividend, and its decision to reduce the dividend was not taken lightly. However, the possibility of continued poor market conditions beyond 2009, along with increased pension funding requirements, compels us to take precautionary action. When our outlook improves, we expect to raise the dividend in line with this target."
Among others in the sector, Fortune Brands, Inc. (FO), a maker of distilled spirits, home/hardware products and golf equipment, reported last Friday a 63.1% fall in net income attributable to Fortune Brands to $124.1 million or $0.82 per share for the third quarter, mainly reflecting much lower one-time gains. On an adjusted basis, quarterly net income fell to $117 million or $0.77 per share from $168.1 million or $1.11 per share last year, on unfavorable foreign exchange and a double-digit decline in net sales. The Deerfield, Illinois-based company's net sales for the quarter fell 10.6% to $1.72 billion. On a comparable basis, total net sales were down 11%.
Neenah, Wisconsin-based Bemis Co. Inc. (BMS) is slated to release its third-quarter earnings results today. The company expects third-quarter earnings to be in the range of $0.38 to $0.43 per share. Analysts expect the company to post earnings of $0.39 per share on sales of $908.99 million, lower than prior year's earnings of $0.44 per share and sales of $984.26 million.
Home improvement and building products maker Masco Corp. (MAS) reported Monday a decline in net profit for the third quarter to $40 million from $44 million in the year-ago quarter, reflecting higher losses from discontinued operations. The Taylor, Michigan-based company's net profit attributable to Masco was $28 million or $0.08 per share, compared with $33 million or $0.09 per share last year. However, income from continuing operations attributable to Masco increased to $51 million or $0.14 per share from $35 million or $0.09 per share a year ago. Net sales fell 17% year-over-year to $2.09 billion, impacted by lower sales of new home construction products and services and a decline in consumer spending.
In an October 2 research note, UBS downgraded its rating on Avery Dennison stock to 'Sell' from 'Neutral'. On September 11, Robert W. Baird upgraded its rating on the company to 'Neutral' from 'Underperform'.
AVY closed Monday's regular trading session at $36.84, down $0.95 or 2.51%, on a volume of 2.38 million shares. In the past 52 weeks, shares have been trading in a broad range of $17.02 to $39.12, with an average 3-month volume of 1.6 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.