“We delivered a strong quarter, with earnings above our expectations,” said Mitch Butier, Avery Dennison president and CEO. “LGM’s (Label and Graphic Materials) organic growth rate rebounded, as expected, and margin remained strong; RBIS (Retail Branding and Information Solutions) delivered another great quarter, with continued strong sales growth and margin expansion; and IHM (Industrial and Healthcare Materials) delivered solid organic sales growth while integrating two recently completed acquisitions.
“We raised our guidance for full-year earnings per share, reflecting our better than expected operating results,” said Butier.
Third Quarter 2017 Results by Segment
• Label and Graphic Materials - Reported sales increased 8.7%. Sales excluding currency increased 6.9%; on an organic basis, sales grew an estimated 5.1%. Reported operating margin improved 30 basis points to 12.8% as the benefits of higher volume and productivity.
• Retail Branding and Information Solutions - Reported sales increased 6.3%; on an organic basis, sales grew an estimated 6.5% driven by strength in both RFID and the base business. Reported operating margin improved 20 basis points to 6.8%.
• Industrial and Healthcare Materials - Reported sales increased 51.8%. Sales excluding currency increased 50.3%; on an organic basis, sales grew an estimated 3.5%. Sales increased mid-single digits on an organic basis in both industrial and healthcare categories. Reported operating margin declined 290 basis points to 8.2% driven primarily by the impact of recent acquisitions.