10.27.16
Avery Dennison announced preliminary, unaudited results for its third quarter ended Oct. 1, 2016.
“We delivered another solid quarter, with EPS above our expectations,” said Mitch Butier, Avery Dennison president and CEO. “PSM continues to deliver, with strong emerging market growth and ongoing operational excellence worldwide. RBIS is making progress with its business model transformation; however, revenue growth and margin are short of our expectations amidst a challenging retail apparel environment.
“Overall, our outlook has improved for full year earnings per share by ten cents,” Butier added. “The effective execution of our strategies continues to enhance our competitive advantage, while driving profitable growth and improving returns.”
(Pressure Sensitive Materials) PSM reported sales increased approximately 4%; on an organic basis, sales grew approximately 3%. Within the segment, sales for the Label and Packaging Materials business grew at a mid-single digit rate on an organic basis. Sales for the combined Graphics and Performance Tapes businesses declined at a low-single digit rate on an organic basis, reflecting an expected program loss in Performance Tapes.
Operating margin improved 30 basis points to 12.3% as the benefit of productivity initiatives and increased volume more than offset the net impact of price and raw material input costs and unfavorable mix. Adjusted operating margin improved 50 basis points.
Retail Branding and Information Solutions (RBIS) reported sales increased 1%; on an organic basis, sales grew approximately 2%. Operating margin improved 90 basis points to 7.7% primarily due to the benefit of lower restructuring charges. Adjusted operating margin improved 20 basis points.
Vancive Medical Technologies sales decline and modest operating loss for the quarter were in line with expectations.
“We delivered another solid quarter, with EPS above our expectations,” said Mitch Butier, Avery Dennison president and CEO. “PSM continues to deliver, with strong emerging market growth and ongoing operational excellence worldwide. RBIS is making progress with its business model transformation; however, revenue growth and margin are short of our expectations amidst a challenging retail apparel environment.
“Overall, our outlook has improved for full year earnings per share by ten cents,” Butier added. “The effective execution of our strategies continues to enhance our competitive advantage, while driving profitable growth and improving returns.”
(Pressure Sensitive Materials) PSM reported sales increased approximately 4%; on an organic basis, sales grew approximately 3%. Within the segment, sales for the Label and Packaging Materials business grew at a mid-single digit rate on an organic basis. Sales for the combined Graphics and Performance Tapes businesses declined at a low-single digit rate on an organic basis, reflecting an expected program loss in Performance Tapes.
Operating margin improved 30 basis points to 12.3% as the benefit of productivity initiatives and increased volume more than offset the net impact of price and raw material input costs and unfavorable mix. Adjusted operating margin improved 50 basis points.
Retail Branding and Information Solutions (RBIS) reported sales increased 1%; on an organic basis, sales grew approximately 2%. Operating margin improved 90 basis points to 7.7% primarily due to the benefit of lower restructuring charges. Adjusted operating margin improved 20 basis points.
Vancive Medical Technologies sales decline and modest operating loss for the quarter were in line with expectations.
