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AVERY DENNISON ANNOUNCES FIRST QUARTER EARNINGS PER SHARE UP 21 PERCENT AND NET INCOME UP 15 PERCENT

 PASADENA, Calif., April 27 /PRNewswire/ -- Avery Dennison Corp. (NYSE: AVY) today reported results for the first quarter ended March 31, 1993:
 -- Earnings per share increased 21 percent to $.40 per share from $.33 per share in 1992.
 -- Net income increased to $23.3 million from $20.3 million in the same period last year.
 -- Sales for the quarter totaled $666.5 million, down slightly from $669.8 million in the first quarter 1992. Excluding the effects of foreign currency translation, sales increased 1 percent.
 Included in the results for the quarter was a non-recurring net benefit of $1.1 million, or $.02 per share, relating to the adoption of new accounting standards for income taxes, post-retirement medical benefits and post-employment benefits.
 Charles D. Miller, chairman and chief executive officer, said that "the results for the first quarter were encouraging, benefiting primarily from solid growth in our U.S.-based materials businesses and the Avery-branded office products business. The lingering recession in Europe continues to slow the growth and profitability of our overseas businesses."
 Miller said that "despite the soft economies in Europe, we expect second quarter earnings to improve over the prior year."
 Avery Dennison, based in Pasadena, is a leader in pressure- sensitive adhesives and materials, office products, labels, tags, retail systems and specialty chemicals. With 200 manufacturing facilities and sales offices in 23 countries, the company serves worldwide consumer and industrial markets with products that mark, decorate, identify, organize and fasten.
 AVERY DENNISON
 Condensed Consolidated Statement of Income
 (In millions, except per share amounts)
 First Quarter Ended
 1993 1992
 Net sales $666.5 $669.8
 Cost of products sold 456.5 459.6
 Gross profit 210.0 210.2
 Marketing, general and
 administrative expense 164.4 166.6
 Operating profit 45.6 43.6
 Interest expense 9.8 10.3
 Income before taxes on income 35.8 33.3
 Taxes on income 13.6 13.0
 Income before cumulative
 effect of changes in
 accounting principles $22.2 $20.3
 Cumulative effect of changes
 in accounting principles (a) 1.1 ---
 Net income $23.3 $20.3
 Per common share amounts:
 Income per share of common
 stock before cumulative
 effect of changes in
 accounting principles $.38 $.33
 Cumulative effect of changes
 in accounting principles (a) .02 ---
 Net income per share of
 common stock $.40 $.33
 Average shares outstanding 58.8 61.0
 (a) Cumulative effect of changes in accounting principles:
 Accounting for income taxes - $.28 per share $16.3
 Accounting for post-retirement benefits,
 net of tax - ($.24) per share (14.2)
 Accounting for post-employment benefits,
 net of tax - ($.02) per share (1.0)
 Cumulative effect of changes in accounting
 principles -- $.02 per share $1.1
 AVERY DENNISON
 Consolidated Balance Sheet
 (In millions)
 First Quarter Ended
 1993 1992
 Assets
 Current assets:
 Cash and cash equivalents $8.3 $2.6
 Trade accounts receivable 374.9 391.0
 Inventories 224.7 237.8
 Other current assets 89.0 80.6
 Total current assets 696.9 712.0
 Property, plant and equipment, net 756.4 784.0
 Intangibles resulting from business
 acquisitions, net 133.2 142.3
 Other assets 125.3 86.5
 Total $1,711.8 $1,724.8
 Liabilities and Shareholders' Equity
 Current liabilities:
 Short-term and current portion of
 long-term debt $81.6 $113.7
 Accounts payable 145.2 144.4
 Accrued liabilities 225.2 189.1
 Total current liabilities 452.0 447.2
 Long-term debt 338.6 339.9
 Other long-term liabilities 126.6 120.9
 Shareholders' equity:
 Common stock 62.1 62.1
 Capital in excess of par value 196.7 195.0
 Retained earnings 676.9 644.2
 Cumulative translation adjustment 14.6 23.5
 Cost of unallocated ESOP shares (64.9) (78.2)
 Treasury stock at cost (90.8) (29.8)
 Total shareholders' equity 794.6 816.8
 Total $1,711.8 $1,724.8
 AVERY DENNISON
 Condensed Consolidated Statement of Cash Flow
 (In millions)
 First Quarter Ended
 1993 1992
 Operating Activities:
 Net income $23.3 $20.3
 Depreciation 20.1 20.8
 Amortization 2.5 2.5
 Deferred taxes 3.5 2.9
 Cumulative effect of changes in
 accounting principles (1.1) ---
 Net decrease in assets and liabilities
 net of the effect of foreign currency
 translation and divested operations (14.0) (64.4)
 Net cash provided by (used in)
 operating activities 34.3 (17.9)
 Investing Activities:
 Purchase of property, plant and equipment (15.5) (17.1)
 Proceeds from sale of assets and
 business divestitures --- 13.5
 Other 3.3 8.2
 Net cash (used in) provided by investing
 activities (12.2) 4.6
 Financing activities:
 Net increase in long-term debt 5.1 11.7
 Net (decrease) increase in short-term debt (5.3) 22.1
 Dividends paid (12.9) (12.2)
 Purchase of treasury stock (4.2) (11.0)
 Net cash (used in) provided by financing
 activities (17.3) 10.6
 Effect of foreign currency translation
 on cash balances (0.4) ---
 Increase (decrease) in cash and cash
 equivalents 4.4 (2.7)
 Cash and cash equivalents, beginning
 of period 3.9 5.3
 Cash and cash equivalents, end of period $8.3 $2.6
 -0- 4/27/93
 /CONTACT: Diane B. Dixon (media), 818-304-2118, or Wayne H. Smith (investor relations), 818-304-2001, both of Avery Dennison/
 (AVY)


CO: Avery Dennison Corp. ST: California IN: HOU SU: ERN

JL-LS -- LA019 -- 1278 04/27/93 11:03 EDT
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Date:Apr 27, 1993
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