Avery Dennison Reports 16.3% Increase in Earnings Per Share; Record Third Quarter and Nine Months Results; Operating Margin at Nine-Year High.PASADENA, Calif.--(BUSINESS WIRE)--Oct. 21, 1997--Avery Dennison Dennison is the name of several places in the United States of America:
For the quarter: -0- -- Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 16.3 percent to $.50 per share, from $.43 per share last year, the eighth consecutive quarterly earnings increase. -- Net income increased to a record high of $52.6 million, from $46.6 million last year. -- Sales increased 5.4 percent to a record $835.6 million, excluding the impact of currency. Reported sales increased 2 percent from $819.3 million last year. -- Unit volume grew 8.7 percent. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased to 24.3 percent from 20.9 percent last year and return on total capital increased to 17.8 percent from 16.0 percent a year ago, the highest returns in more than 30 years. Fully diluted earnings per share for the nine months increased 19.5 percent to an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high of $1.41 per share from $1.18 per share in 1996. Net income increased 17.3 percent to a record high of $150.4 million from $128.2 million. Excluding the impact of currency, sales increased 6.4 percent to a record $2.5 billion. Reported sales increased 4 percent. Unit volume rose 9.8 percent. "During the third quarter, both business sectors showed solid sales gains, excluding currency effects," said Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by D. Miller, chairman and chief executive officer. "Internationally, excluding currency, sales growth was particularly strong. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , sales were impacted by inventory adjustments during July July: see month. and August by key consumer and converted products customers. Sales in this sector rebounded in September September: see month. ." In the pressure-sensitive adhesives and materials sector, roll paper and film label materials for information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. and pharmaceutical applications contributed to the quarter's sales growth. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved to 10.3 percent, the highest level in nine years, and contributed to the company's continued profit improvement. "We are pleased with our results in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia Pacific, and we are investing aggressively in those markets," Miller said. "We continue to benefit from operating margin improvement, a rigorous emphasis on asset management and aggressive global expansion to increase shareholder value. "Looking ahead, we expect our current business trends to continue, resulting in another record year for Avery Dennison Avery Dennison Corporation (NYSE: AVY) produces pressure-sensitive materials (such as self-adhesive labels), office products, and various paper products. R. Stanton Avery founded Avery in 1935. Avery Dennison Corporation was created in 1990 by merger of Avery and Dennison. ," Miller said. Avery Dennison, a global leader in pressure-sensitive technology, develops, manufactures and markets innovative self-adhesive self-ad·he·sive adj. Having a surface coated with an adhesive and not needing any substance, such as glue or paste, applied to form a bond: self-adhesive wallpaper; self-adhesive labels. solutions for consumer products and label systems. Based in Pasadena, the company makes a wide range of products for consumer and industrial markets, including Avery-brand office automation products, Fasson-brand self-adhesive materials, peel-and-stick postage stamps This is a list of postage stamps that are especially notable in some way. The best-known stamps:
v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. retail tag and labeling systems, and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. tapes and chemicals. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 16,100 employees in 200 manufacturing and sales facilities produce and sell Avery Dennison products in 89 countries worldwide. -0-
AVERY DENNISON
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per-share amounts)
(Unaudited)
Three Months Ended
Sept. 27, Sept. 28,
1997 1996
Net sales $ 835.6 $ 819.3
Cost of products sold 565.5 558.8
Gross profit 270.1 260.5
Marketing, general & administrative expense 183.9 181.1
Net gain on divestitures and restructuring
charges --- 2.1
Interest expense 8.0 10.1
Income before taxes 78.2 71.4
Taxes on income 25.6 24.8
Net income $ 52.6 $ 46.6
Net income per fully diluted common share 0.50 0.43
Average shares outstanding:
Fully diluted common shares 106.1 107.2
Common shares outstanding at period end 103.0 104.4
AVERY DENNISON
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per-share amounts)
(Unaudited)
Nine Months Ended
Sept. 27, Sept. 28,
1997 1996
Net sales $ 2,509.3 $ 2,413.6
Cost of products sold 1,702.5 1,658.0
Gross profit 806.8 755.6
Marketing, general & administrative expense 552.9 531.3
Net gain on divestitures and
restructuring charges --- 2.1
Interest expense 25.3 28.4
Income before taxes 228.6 198.0
Taxes on income 78.2 69.8
Net income $ 150.4 $ 128.2
Net income per fully diluted
common share 1.41 1.18
Average shares outstanding:
Fully diluted common shares 106.3 108.2
Common shares outstanding at period end 103.0 104.4
AVERY DENNISON
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
(Unaudited)
ASSETS Sept. 27, Sept. 28,
1997 1996
Current assets:
Cash and cash equivalents $ 6.3 $ 5.3
Trade accounts receivable, net 499.4 470.7
Inventories, net 227.1 242.7
Other current assets 110.7 108.1
Total current assets 843.5 826.8
Property, plant and equipment, net 946.9 923.7
Intangibles resulting from business
acquisitions, net 134.5 135.6
Other assets 135.8 130.2
$ 2,060.7 $ 2,016.3
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of
long-term debt $ 58.2 $ 81.1
Accounts payable 215.2 178.6
Other current liabilities 357.7 392.9
Total current liabilities 631.1 652.6
Long-term debt 430.5 394.5
Other long-term liabilities 173.0 141.9
Shareholders' equity:
Common stock/a 124.1 124.1
Capital in excess of par value/a 506.1 129.4
Retained earnings 1,034.3 918.7
Cumulative translation adjustment (17.7) 30.6
Cost of unallocated ESOP shares (29.4) (27.0)
Minimum pension liability (0.2) (2.6)
Employee stock benefit trust (666.0) 0.0
Treasury stock at cost (125.1) (345.9)
Total shareholders' equity 826.1 827.3
$ 2,060.7 $ 2,016.3
(a) 1996 amounts were restated to reflect the December 1996
two-for-one common stock split.
AVERY DENNISON
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
(In millions)
(Unaudited)
Nine Months Ended
Sept. 27, 1997 Sept. 28, 1996
Operating Activities:
Net income $ 150.4 $ 128.2
Adjustments to reconcile net income
to net cash provided
by operating activities:
Depreciation 78.5 74.9
Amortization 8.4 9.4
Net gain on divestitures and
restructuring charges -- (2.1)
Deferred taxes 1.3 (5.9)
Cash provided by operations 238.6 204.5
Changes in assets and liabilities,
net of the effect of foreign
currency translation, business
divestitures and acquisitions (28.2) (36.5)
Net cash provided by operating activities 210.4 168.0
Investing Activities:
Purchase of property, plant and equipment (104.1) (110.6)
Net (payments)/proceeds from sale of assets
business divestitures and
acquisitions (4.2) 12.1
Other (16.6) (3.7)
Net cash used in investing activities (124.9) (102.2)
Financing Activities:
Net decrease in long-term debt (30.6) (1.5)
Net increase in short-term debt 57.7 27.6
Dividends paid (61.7) (47.3)
Purchase of treasury stock (57.6) (74.4)
Other 9.7 8.1
Net cash used in financing activities (82.5) (87.5)
Effect of foreign currency
translation on cash balances (0.5) --
Increase (decrease) in cash and cash
equivalents 2.5 (21.7)
Cash and cash equivalents,
beginning of period 3.8 27.0
Cash and cash equivalents, end of period $ 6.3 $ 5.3
CONTACT: Avery Dennison Corp., Pasadena Diane DIANE Diversified Information and Assistance Network (Tennessee Valley Authority) DIANE Direct Information Access Network for Europe DIANE Digital Integrated Attack and Navigation Equipment B. Dixon Dixon, city (1990 pop. 15,144), seat of Lee co., N Ill., on the Rock River; founded 1830, inc. 1857. Corn and soybeans are grown, cattle are raised, and there is light manufacturing. , 626/304-2118 (media relations) dixondiane@averydennison.com or Wayne Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. H. Smith, 626/304-2001 (investor relations Investor relations The process by which the corporation communicates with its investors. ) investorcom@averydennison.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion