10.25.19
Avery Dennison Corporation announced preliminary, unaudited results for its third quar-ter ended September 28, 2019.
“We continue to deliver solid profit growth despite soft market demand,” said Mitch Butier, Chairman, President and CEO. “Our focus in this slower growth environment has been to protect our margins in the base business, while driving faster-than-average growth in high value categories like RFID, and we’re executing well on both fronts.
“For the quarter, Label and Graphic Materials delivered modest organic growth, as vol-umes improved relative to the first half of the year, and operating margin was strong; Re-tail Branding and Information Solutions delivered solid organic growth, as continued strength in RFID more than offset a slowdown in the base business, and operating margin remained strong; and IHM outperformed expectations on both the top and bottom lines, delivering solid organic growth and strong margin expansion.
“We have revised the high end of our guidance range for 2019 earnings per share, re-flecting the incremental negative impact from currency translation, largely offset by stronger operational results and a modestly lower tax rate,” added Butier. “We’re confi-dent in our ability to achieve our long-term targets, reflecting the resilience of our busi-ness and ability of our team to adapt to changing market conditions.”
Retail Branding and Information Solutions’ reported sales increased 2.1%; on an organic basis, sales grew 4.1%, driven primarily by continued strength in sales of radio frequency identification (RFID) solutions, which increased by approximately 20%.
Reported operating margin increased 60 basis points to 11.2%, as productivity, higher volume, and lower restructuring charges more than offset higher employee-related costs and growth-related investments. Adjusted operating margin increased 10 basis points to 11.5%.
“We continue to deliver solid profit growth despite soft market demand,” said Mitch Butier, Chairman, President and CEO. “Our focus in this slower growth environment has been to protect our margins in the base business, while driving faster-than-average growth in high value categories like RFID, and we’re executing well on both fronts.
“For the quarter, Label and Graphic Materials delivered modest organic growth, as vol-umes improved relative to the first half of the year, and operating margin was strong; Re-tail Branding and Information Solutions delivered solid organic growth, as continued strength in RFID more than offset a slowdown in the base business, and operating margin remained strong; and IHM outperformed expectations on both the top and bottom lines, delivering solid organic growth and strong margin expansion.
“We have revised the high end of our guidance range for 2019 earnings per share, re-flecting the incremental negative impact from currency translation, largely offset by stronger operational results and a modestly lower tax rate,” added Butier. “We’re confi-dent in our ability to achieve our long-term targets, reflecting the resilience of our busi-ness and ability of our team to adapt to changing market conditions.”
Retail Branding and Information Solutions’ reported sales increased 2.1%; on an organic basis, sales grew 4.1%, driven primarily by continued strength in sales of radio frequency identification (RFID) solutions, which increased by approximately 20%.
Reported operating margin increased 60 basis points to 11.2%, as productivity, higher volume, and lower restructuring charges more than offset higher employee-related costs and growth-related investments. Adjusted operating margin increased 10 basis points to 11.5%.
