Avery Dennison Reports 4th Quarter 2002 and Year-End Results; Annual Sales Grow 11 Percent to Record $4.2 Billion.Business Editors PASADENA, Calif.--(BUSINESS WIRE)--Jan. 28, 2003 Company Posts Double-Digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Growth for the Quarter, Excluding $16.9 Million Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and Asset Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. Charge 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. Corporation (NYSE NYSE See: New York Stock Exchange :AVY AVY may refer to:
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 of $0.56, or $0.68 per share before a restructuring and asset impairment charge, which includes costs associated with the integration of Jackstadt. This compares with earnings of $0.59 per share for the fourth quarter a year ago, reflecting an increase of 15 percent, excluding the charge. 2002 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. earnings per share were $2.59, or $2.81 per share excluding the charge, which compares with $2.47 per share in 2001. "Avery Dennison delivered strong results for the fourth quarter, even though weak economic conditions continued to present a challenging operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. ," said Philip Philip, tetrarch of Ituraea Philip, d. A.D. 34, tetrarch of Ituraea, son of Herod the Great. He was perhaps the ablest of the Herod dynasty. He is mentioned in the Gospel of St. Luke. M. Neal, chairman and chief executive officer of Avery Dennison. "We ended 2002 with solid performance, highlighted by a return to double-digit earnings growth, the completion of three acquisitions, the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of several small businesses, and the introduction of a major new program designed to accelerate top-line growth." "During 2002, our company-wide Six Sigma Not to be confused with Sigma 6. Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects.[1] A defect is defined as nonconformity of a product or service to its specifications. productivity improvement program continued to reduce costs, while our major lines of business successfully launched new products and applications in a variety of consumer and industrial markets." Financial highlights for the fourth quarter: -- Earnings per share, on a diluted basis, were $0.56, compared with the prior year's fourth quarter earnings of $0.59 per share. Excluding the restructuring and asset impairment charge, earnings were $0.68 per share in the fourth quarter of 2002, reflecting growth of 15 percent over the prior-year fourth quarter. -- Net income was $55.5 million, compared with $58.1 million in the prior year quarter. Excluding the restructuring and asset impairment charge, net income was $67.4 million in the fourth quarter of 2002, reflecting growth of 16 percent over the same quarter a year ago. -- Reported sales grew 21 percent to $1.1 billion, compared with $912.6 million a year ago. Excluding the impact of currency exchange rates, acquisitions and divestitures, sales increased by approximately 6 percent over the prior-year fourth quarter. -- Unit volumes grew by an estimated 7.5 to 8.5 percent in the quarter, excluding the impact of acquisitions and divestitures. -- Operating margin (earnings before interest and taxes as a percent of sales) was 8.3 percent in the quarter. Excluding the effect of the restructuring and asset impairment charge, as well as the estimated impact of acquisitions, operating margin was 11.1 percent, an increase of 90 basis points relative to the same period last year. -- Working capital as a percentage of sales improved to 5.1 percent. -- The year-to-date tax rate remained unchanged from the preceding quarter at 29.5 percent. As previously announced, the Company took a charge of $16.9 million in the fourth quarter of 2002 for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and asset impairment costs, related to the integration of the Jackstadt acquisition, the closure of an office products manufacturing facility which was announced in October October: see month. , and other cost reduction actions. Avery Dennison said that new accounting rules and the timing of cost reduction actions require the Company to spread total integration-related restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. over three quarters. As a result, the Company expects to take a charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $20 million in the first quarter of 2004 for the balance of the severance costs related to the Jackstadt acquisition. The Company reported that the integration of Jackstadt operations is proceeding better than originally expected. The Company said that it expects the acquisition to have an accretive impact on earnings of $0.08 to $0.10 per share in 2003. Avery Dennison said that it rebalanced its short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. portfolio in mid-January n. 1. the middle part of January. Noun 1. mid-January - the middle part of January period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , 2003, by issuing $400 million of debt, using the proceeds to pay down short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. incurred to finance acquisitions made in 2002. Operations Review The Pressure-sensitive Adhesives and Materials sector achieved strong growth over the fourth quarter of 2001 with reported sales for the sector of $689 million, an increase of 28 percent. Excluding the impact of acquisitions, divestitures and currency exchange rates, sales grew approximately 8 percent. The worldwide roll materials business and the 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 business achieved solid growth in the fourth quarter of 2002, as did the international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. of the graphics and reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. materials businesses. Sales in the U.S. graphics and reflective materials businesses were flat compared with the prior year. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the sector was 6.5 percent in the quarter. Excluding restructuring and asset impairment charges, last year's gain on a divestiture, and the estimated impact of the Jackstadt acquisition, sector operating margin increased 210 basis points over the prior-year fourth quarter to 9.5 percent. The Consumer and Converted Products sector reported solid sales growth compared with the fourth quarter of 2001, with reported sales for the sector of $461 million, an increase of 9 percent. Excluding the impact of acquisitions, divestitures and currency exchange rates, sales grew approximately 2 percent. The North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. office products business posted solid increases in sales. The Retail Information Services See Information Systems. business and the Industrial and Automotive Products business achieved strong sales. Sales were flat in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Office Products business compared with the prior-year fourth quarter. Operating margin for the sector was 11.7 percent in the fourth quarter. Excluding restructuring and asset impairment charges and the estimated impact of the RVL RVL Revolution (Nintendo) RVL Regio Verkehrsverbund Lörrach GmbH (German) RVL Rolling Vertical Landing and L&E acquisitions, sector operating margin increased 10 basis points over the prior-year fourth quarter to 13.7 percent. The Company completed the previously announced acquisitions of RVL and L&E during the fourth quarter, providing expanded manufacturing capabilities and enhanced marketing and brand management expertise for the Company's growing Retail Information Services business. Integration of the operations of the two companies is in progress, which will enable Avery Dennison to offer global, full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. brand identification and data management systems to its retail and apparel customers. The Company stated that it expects the acquisitions to have an accretive impact on earnings of $0.04 to $0.08 per share in 2003. Financial highlights for the year: -- Earnings per share, on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, were $2.59 compared with $2.47 a year ago. Excluding the impact of restructuring and asset impairment charges, annual earnings were $2.81 per share in 2002, reflecting an increase of 14 percent compared with 2001. -- Net income was $257.2 million compared with $243.2 million in 2001. Excluding restructuring and asset impairment charges, annual net income was $279.8 million, an increase of 15 percent over the prior year. -- Reported sales grew 11 percent to $4.2 billion. Excluding the impact of currency exchange rates, acquisitions and divestitures, sales increased by approximately 5 percent compared with 2001. -- Unit volume increased by an estimated 7 to 8 percent over the prior year, excluding the impact of acquisitions and divestitures. -- Operating margin was 9.7 percent for the year. Excluding the effect of restructuring and asset impairment charges, as well as the initial negative impact of the acquisitions completed during the year, operating margin was an estimated 11.4 percent, an increase of 40 basis points over the prior year. -- Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the year increased by 39 percent over the prior year to $523 million. -- 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. was 25.7 percent in 2002, compared with 27.4 percent in 2001. -- Return on total capital was 15.8 percent, compared with 16.2 percent a year ago. Outlook Avery Dennison said that it expects earnings for the first quarter of 2003 to be in the range of $0.70 to $0.74 per share, with an estimate of annual earnings for 2003 in the range of $3.00 to $3.25 per share. The Company stated that its estimate for the first quarter assumes reported sales growth in the range of 22 to 26 percent, and that the full-year earnings expectation assumes reported sales growth in the range of 14 to 18 percent, augmented by the effects of acquisitions and currency exchange rates. The Company estimates that operating margin for the first quarter will be in the range of 9.9 to 10.3 percent, while operating margin for the full year will be in the range of 10 to 10.5 percent. The Company's estimates reflect an expectation of current uncertain economic conditions, improvement in underlying operations, the benefit of acquisitions completed during 2002, and the positive effect of anticipated currency exchange rates. These improvements are partially offset by increases in spending associated with new top-line growth initiatives, pension expense, medical and other insurance costs, and interest expense, as well as transition costs associated with the start-up Start-up The earliest stage of a new business venture. of two new coating lines. "An exciting, new growth acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. initiative is taking root throughout Avery Dennison. We intend to increase the pace at which we deliver successful new products to market, and as a result, we expect to introduce a variety of innovative products, unique applications and new or expanded business lines in the future," said Neal. "While some weakness still exists in a number of markets due to economic conditions and we are being relatively cautious with our short-term outlook, Avery Dennison has excellent long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. opportunities to build and sustain growth." Avery Dennison is a global leader in pressure-sensitive technology and 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 materials. Based in Pasadena, Calif., the Company had 2002 sales of $4.2 billion. Avery Dennison develops, manufactures and markets a wide range of products for consumer and industrial markets, including Avery-brand office 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 tapes and chemicals. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain information presented in this news release may constitute "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements. These statements are subject to certain risks and uncertainties. Actual results and trends may differ materially from historical or expected results depending on a variety of factors, including but not limited to price and availability of raw materials, foreign exchange rates, worldwide and local economic conditions, successful integration of new acquisitions, financial condition and inventory strategies of customers, acceptance of new products, fluctuations in demand affecting sales to customers and other matters referred to in the Company's SEC filings. For more information and to listen to a live broadcast or an audio replay of the 4th Quarter 2002 and Year-end conference call with analysts, visit the Avery Dennison Web site at www.investors.averydennison.com.
AVERY DENNISON
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share amounts)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2002 2001 2002 2001
----------------------------------------------------------------------
Net sales $1,105.3 $912.6 $4,206.9 $3,803.3
Cost of products sold 760.2 616.0 2,853.2 2,563.1
----------------------------------------------------------------------
Gross profit 345.1 296.6 1,353.7 1,240.2
Marketing, general &
administrative expense 236.5 203.3 913.1 830.5
Other expense (income), net(a) 16.9 (0.3) 32.1 (0.3)
Interest expense 13.0 10.5 43.7 50.2
----------------------------------------------------------------------
Income before taxes 78.7 83.1 364.8 359.8
Taxes on income 23.2 25.0 107.6 116.4
----------------------------------------------------------------------
Income before accounting
change 55.5 58.1 257.2 243.4
Cumulative effect of
accounting change, net of
tax(b) --- --- --- (0.2)
----------------------------------------------------------------------
Net income $55.5 $58.1 $257.2 $243.2
----------------------------------------------------------------------
Diluted earnings per share:
Before accounting change $0.56 $0.59 $2.59 $2.47
Cumulative effect of
accounting change --- --- --- ---
----------------------------------------------------------------------
Net income per common
share, assuming
dilution $0.56 $0.59 $2.59 $2.47
----------------------------------------------------------------------
Average common shares
outstanding, assuming
dilution 99.7 98.5 99.4 98.6
----------------------------------------------------------------------
Common shares outstanding at
period end 99.3 97.9 99.3 97.9
----------------------------------------------------------------------
(a) Other expense in 2002 includes a restructuring charge, asset
impairment charges and lease cancellation costs. Other expense in
2001 includes a pretax gain of $20.2 million from the sale of the
Company's specialty coatings business and a pretax cost reduction
charge of $19.9 million.
(b) As required, the Company adopted SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" and related
amendments in the first quarter of 2001.
AVERY DENNISON
SUPPLEMENTARY INFORMATION
(In millions)
Fourth Quarter Ended
------------------------------------------
NET SALES OPERATING OPERATING
INCOME(a) MARGINS
---------------- ------------- -----------
2002 2001 2002 2001 2002 2001
---------------- ------------- -----------
Pressure-sensitive Adhesives
and Materials $689.3 $539.6 $44.5 $53.2 6.5% 9.9%
Consumer and Converted
Products 460.7 421.2 54.0 48.1 11.7% 11.4%
Intersegment Sales (44.7) (48.2) N/A N/A N/A N/A
Corporate Expense N/A N/A (6.8) (7.7) N/A N/A
Interest Expense N/A N/A (13.0) (10.5) N/A N/A
---------------- ------------- -----------
TOTAL $1,105.3 $912.6 $78.7 $83.1 7.1% 9.1%
================ ============= ===========
Note (a): Operating income for the fourth quarter of 2002 includes
asset impairment charges and restructuring costs of $16.9 million, of
which the Pressure-sensitive Adhesives and Materials segment recorded
$11 million and the Consumer and Converted Products segment recorded
$5.9 million.
AVERY DENNISON
SUPPLEMENTARY INFORMATION
(In millions)
Twelve Months Year-to-Date
----------------------------------------------
NET SALES OPERATING OPERATING
INCOME(a) MARGINS
------------------ --------------- -----------
2002 2001 2002 2001 2002 2001
------------------ --------------- -----------
Pressure-sensitive
Adhesives and
Materials $2,568.0 $2,188.8 $198.0 $192.1 7.7% 8.8%
Consumer and Converted
Products 1,811.7 1,783.8 245.5 244.4 13.6% 13.7%
Intersegment Sales (172.8) (169.3) N/A N/A N/A N/A
Corporate Expense N/A N/A (35.0) (26.5) N/A N/A
Interest Expense N/A N/A (43.7) (50.2) N/A N/A
------------------ --------------- -----------
TOTAL $4,206.9 $3,803.3 $364.8 $359.8 8.7% 9.5%
================== =============== ===========
Note (a): Operating income for 2002 includes asset impairment charges,
lease cancellation costs and restructuring costs of $32.1 million, of
which the Pressure-sensitive Adhesives and Materials segment recorded
$22 million and the Consumer and Converted Products segment recorded
$10.1 million.
AVERY DENNISON
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
ASSETS Dec. 28, 2002 Dec. 29, 2001
----------------------------------------------------------------------
Current assets:
Cash and cash equivalents $22.8 $19.1
Trade accounts receivable, net 733.4 579.2
Inventories, net 343.6 267.4
Other current assets 115.7 124.6
----------------------------------------------------------------------
Total current assets 1,215.5 990.3
Property, plant and equipment, net 1,199.2 1,074.6
Goodwill, net 628.7 293.2
Intangibles resulting from business
acquisitions, net 147.9 120.0
Other assets 461.1 431.5
----------------------------------------------------------------------
$3,652.4 $2,909.6
----------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
----------------------------------------------------------------------
Current liabilities:
Short-term and current portion of
long-term debt $307.0 $223.0
Accounts payable 441.0 316.4
Other current liabilities 548.1 419.7
----------------------------------------------------------------------
Total current
liabilities 1,296.1 959.1
Long-term debt 837.2 626.7
Other long-term liabilities 462.7 394.4
Shareholders' equity:
Common stock 124.1 124.1
Capital in excess of par value 740.2 707.2
Retained earnings 1,664.8 1,556.1
Minimum pension liability (97.4) (14.3)
Accumulated other comprehensive loss (107.5) (122.1)
Cost of unallocated ESOP shares (12.2) (13.7)
Employee stock benefit trusts (658.7) (674.5)
Treasury stock at cost (596.9) (633.4)
----------------------------------------------------------------------
Total shareholders'
equity 1,056.4 929.4
----------------------------------------------------------------------
$3,652.4 $2,909.6
----------------------------------------------------------------------
Certain prior year amounts have been reclassified to conform with the
current year presentation.
AVERY DENNISON
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Twelve Months Ended
----------------------------
Dec. 28, 2002 Dec. 29, 2001
----------------------------------------------------------------------
Operating Activities:
Net income $257.2 $243.2
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 127.1 124.1
Amortization 25.7 31.9
Deferred taxes 22.2 3.0
Asset impairment and (gain) or
loss on sale of assets 20.7 (0.3)
------- -------
452.9 401.9
Changes in assets and liabilities 69.9 (26.4)
------- -------
Net cash provided by operating
activities 522.8 375.5
------- -------
Investing Activities:
Purchase of property, plant and
equipment (151.8) (135.4)
Proceeds from sale of assets 10.7 33.7
Payments for acquisitions (397.4) (63.9)
Purchase of software (20.1) (50.3)
Other (16.8) (52.4)
------- -------
Net cash used by investing activities (575.4) (268.3)
------- -------
Financing Activities:
Additional borrowings 697.0 364.8
Payments of debt (520.2) (343.5)
Dividends paid (148.5) (135.4)
Purchase of treasury stock (10.4) (17.9)
Proceeds from exercise of stock options 22.1 17.4
Other 17.0 15.5
------- -------
Net cash provided/(used) by financing
activities 57.0 (99.1)
------- -------
Effect of foreign currency translation
on cash balances (0.7) (0.4)
------- -------
Increase in cash and cash equivalents 3.7 7.7
------- -------
Cash and cash equivalents, beginning of
period 19.1 11.4
------- -------
Cash and cash equivalents, end of period $22.8 $19.1
======= =======
Avery Dennison Corp.
Reconciliation of "Adjusted" Net Income & Earnings per Share
to GAAP Net Income & Earnings per Share
(in $ millions, except earnings per share figures)
Three Months
Ended
Three Months Ended December 29,
December 28, 2002 2001 Growth
------------------------- ------------- ----------------
Restructuring &
asset
impairment
GAAP charges Adjusted GAAP GAAP Adjusted
---- ------- -------- ---- ---- --------
Net Income $55.5 ($11.9) $67.4 $58.1 -4.5% 16.0%
Earnings per
Share $0.56 ($0.12) $0.68 $0.59 -5.1% 15.3%
Year Ended
Year Ended December 29,
December 28, 2002 2001 Growth
------------------------- ------------- ----------------
Restructuring &
asset
impairment
GAAP charges Adjusted GAAP GAAP Adjusted
---- ------- -------- ---- ---- --------
Net Income $257.2 ($22.6) $279.8 $243.2 5.8% 15.0%
Earnings per
Share $2.59 ($0.22) $2.81 $2.47 4.9% 13.8%
Avery Dennison Corp.
Reconciliation of "Adjusted" Sales to GAAP Sales
(in millions)
Three Months Ended December 28, 2002
--------------------------------------------
Estimated
Impact of
GAAP Acquisitions & Adjusted
Sales Divestitures(a) Sales
----- --------------- -----
Avery Dennison $1,105.3 ($130.3) $974.9
CCP Sector $460.7 ($30.3) $430.4
PS Sector $689.3 ($100.0) $589.3
Eliminations ($44.7) $0.0 ($44.7)
Three Months Ended December 29, 2001
-------------------------------------------------------
Adjustment to
Reflect 2001
GAAP Impact of Sales at 2002 Adjusted
Sales Divestitures Currency Rates Sales
----- ------------ -------------- -----
Avery Dennison $912.6 ($13.8) $18.6 $917.4
CCP Sector $421.2 ($9.2) $8.9 $421.0
PS Sector $539.6 ($4.4) $10.4 $545.7
Eliminations ($48.2) ($0.3) ($0.7) ($49.2)
Growth Rate
------------------
GAAP Adjusted
Sales Sales
----- -----
Avery Dennison 21.1% 6.3%
CCP Sector 9.4% 2.2%
PS Sector 27.7% 8.0%
Eliminations 7.2% 9.1%
Year Ended December 28, 2002
-------------------------------------------
Estimated
Impact of
GAAP Acquisitions & Adjusted
Sales Divestitures(a) Sales
----- --------------- -----
Avery Dennison $4,206.9 ($291.7) $3,915.1
CCP Sector $1,811.7 ($50.2) $1,761.5
PS Sector $2,568.0 ($241.2) $2,326.8
Eliminations ($172.8) ($0.3) ($173.1)
Year Ended December 29, 2001
-------------------------------------------------------
Adjustment to
Reflect 2001
GAAP Impact of Sales at 2002 Adjusted
Sales Divestitures Currency Rates Sales
----- ------------ -------------- -----
Avery Dennison $3,803.3 ($94.3) $19.8 $3,728.8
CCP Sector $1,783.8 ($49.6) $14.7 $1,748.9
PS Sector $2,188.8 ($39.5) $6.2 $2,155.6
Eliminations ($169.3) ($5.3) ($1.1) ($175.7)
Growth Rate
-----------------
GAAP Adjusted
Sales Sales
----- -----
Avery Dennison 10.6% 5.0%
CCP Sector 1.6% 0.7%
PS Sector 17.3% 7.9%
Eliminations -2.1% 1.5%
(a) Includes estimated impact of Jac, RVL and L&E acquisitions net
of several minor divestitures
Avery Dennison Corp.
Reconciliation of "Adjusted" Earnings before Interest and Taxes
to GAAP Earnings before Interest and Taxes
(in millions)
Three Months Ended December 28, 2002
---------------------------------------------------------------
GAAP Restructuring & Estimated Adjusted
Earnings before asset Impact of 2002 Earnings before
Interest & taxes impairment Acquisitions(a) Interest
charges & taxes
---------------- ------- --------------- ---------------
Avery Dennison $91.7 ($16.9) $0.5 $108.1
CCP Sector $54.0 ($5.9) $0.9 $58.9
PS Sector $44.5 ($11.0) ($0.4) $56.0
Corporate Expense ($6.8) $0.0 $0.0 ($6.8)
Three Months Ended December 29, 2001
---------------------------------------------------------------
GAAP Restructuring & Adjusted
Earnings before asset Gain on Earnings before
Interest & taxes impairment Divestiture Interest
charges & taxes
---------------- ------- ----------- -------
Avery Dennison $93.6 ($19.9) $20.2 $93.3
CCP Sector $48.1 ($9.4) $0.0 $57.5
PS Sector $53.2 ($7.6) $20.2 $40.6
Corporate Expense ($7.7) ($2.9) $0.0 ($4.8)
Earnings before Interest and Taxes as a % of Net Sales
------------------------------------------------------
2002 2001
----------------- ----------------
GAAP Adjusted GAAP Adjusted
---- -------- ---- --------
Avery Dennison 8.3% 11.1% 10.3% 10.2%
CCP Sector 11.7% 13.7% 11.4% 13.6%
PS Sector 6.5% 9.5% 9.9% 7.4%
Corporate Expense N/A N/A N/A N/A
Year Ended December 28, 2002
---------------------------------------------------------------
GAAP Restructuring & Estimated Adjusted
Earnings before asset Impact of 2002 Earnings before
Interest & taxes impairment Acquisitions(a) Interest
charges & taxes
---------------- ------- --------------- -------
Avery Dennison $408.5 ($32.1) ($4.8) $445.4
CCP Sector $245.5 ($10.1) $0.9 $254.7
PS Sector $198.0 ($22.0) ($5.7) $225.7
Corporate
Expense ($35.0) $0.0 $0.0 ($35.0)
Year Ended December 29, 2001
---------------------------------------------------------------
GAAP Restructuring & Adjusted
Earnings before asset Gain on Earnings before
Interest & taxes impairment Divestiture Interest
charges & taxes
---------------- ------- ----------- -------
Avery Dennison $410.0 ($19.9) $20.2 $409.7
CCP Sector $244.4 ($9.4) $0.0 $253.7
PS Sector $192.1 ($7.6) $20.2 $179.5
Corporate ($26.5) ($2.9) $0.0 ($23.6)
Expense
Earnings before Interest and Taxes as a % of Net Sales
------------------------------------------------------
2002 2001
------------------ ------------------
GAAP Adjusted GAAP Adjusted
---- -------- ---- --------
Avery Dennison 9.7% 11.4% 10.8% 11.0%
CCP Sector 13.6% 14.5% 13.7% 14.5%
PS Sector 7.7% 9.7% 8.8% 8.3%
Corporate N/A N/A N/A N/A
Expense
(a) Includes estimated impact of Jac, RVL and L&E acquisitions
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion