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Avery Dennison Raises FY18 Guidance Midpoint For Adj. EPS By $0.13 - Quick Facts

Avery Dennison Corp. (AVY) announced, for fiscal 2018, excluding an estimated $0.95 per share for restructuring charges and other items, it now expects adjusted earnings per share of $5.85 to $6.05. The company now expects 2018 reported earnings per share of $4.90 to $5.10. The reported EPS guidance midpoint was reduced by $0.63, reflecting higher anticipated restructuring charges.

First-quarter adjusted EPS was $1.44, up 30 percent driven by a combination of solid operating results, currency translation tailwinds, and a lower tax rate. Net sales increased 13.0% to $1.78 billion. Sales growth ex. currency was 6.8%. Organic sales were up 3.4%.

Mitch Butier, President and CEO, said: "Label and Graphic Materials delivered solid organic growth and sustained its strong operating margin; Retail Branding and Information Solutions expanded its margin significantly, with solid organic growth driven by strength in RFID; and Industrial and Healthcare Materials results were in line with expectations, with revenue up nearly 50 percent, largely due to acquisitions, while operating margin declined. We have initiated a large, multi-year restructuring plan associated with the consolidation of LGM's European footprint, designed to further enhance our competitive position in the region. Excluding the incremental charges from this action, our current year outlook has improved."

The company approved a restructuring plan associated with the consolidation of the European footprint of its Label and Graphic Materials segment, which is expected to result in a net reduction in headcount of approximately 150 positions. The company expects this plan to be largely complete by the end of 2019. The company expects to realize approximately $25 million in annualized savings from this plan, beginning in 2020.

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