Avery Dennison announces record quarterly results; first quarter earnings per share up 17 percent.PASADENA, Calif.--(BUSINESS WIRE)--April 23, 1996--Avery Dennison Dennison is the name of several places in the United States of America:
o Earnings per share increased 17 percent to $.76 per share from $.65 per share for the same quarter last year. o Net income increased 16 percent to $40.0 million from $34.5 million in the same period last year. o Excluding divested units, sales increased 5.6 percent to $796.6 million. Reported sales increased 3.0 percent from $773.2 million. o 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 a record 19.6 percent and return on total capital increased to 15.3 percent, the highest returns in more than ten years. 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, said, "First quarter net income improved significantly due to stronger sales and continued cost control. Both U.S. and 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. reported solid increases in sales and income. "Avery-brand products continue to receive excellent consumer acceptance. New and innovative Avery-brand laser and ink-jet Adj. 1. ink-jet - of or relating to an ink-jet printer printer products for home and office contributed to an outstanding first quarter. Solid demand for Fasson-brand pressure-sensitive film and paper materials, combined with industry-leading customer service, contributed to excellent sales growth. Significant investments in new process capabilities and new geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. markets continued during the quarter. "Based on current economic indicators Economic indicators The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate. , we expect sales and profits for the second quarter to improve over prior year." 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. , based in Pasadena, makes 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. materials, tapes and labels, office products, tags, retail systems and specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. . Consumer brands include AVERY A·ver·y , Oswald 1877-1955. American bacteriologist noted for establishing (1944) that DNA is responsible for the transmission of heritable characteristics. brand office labels and card products, indexes, binders and software, and FASSON brand self-adhesive materials for industrial markets. The Company has 15,500 employees in more than 200 manufacturing facilities and sales offices in 33 countries. -0-
Avery Dennison
Consolidated Statement of Income
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
Mar 30, 1996 Apr 1, 1995
Net sales $ 796.6 $ 773.2 Cost of products sold 549.9 528.4 Gross profit 246.7 244.8 Marketing, general & administrative expense 175.3 180.0 Interest expense 8.9 10.0 Income before taxes 62.5 54.8 Taxes on income 22.5 20.3 Net income $ 40.0 $ 34.5
Net income per share
of common stock $ 0.76 $ 0.65
Average shares outstanding 52.9 53.4 Shares outstanding at period end 52.8 53.3 -0-
Avery Dennison
Condensed Consolidated Balance Sheet
(In millions)
(Unaudited)
Assets Mar 30, 1996 Apr 1, 1995 Current assets: Cash and cash equivalents $ 5.3 $ 3.4 Trade accounts receivable, net 460.0 431.6 Inventories, net 229.0 236.1 Other current assets 102.6 88.5
Total current assets 796.9 759.6
Property, plant and equipment, net 909.8 863.7
Intangibles resulting from
business acquisitions, net 122.6 128.8
Other assets 133.9 132.0
$ 1,963.2 $ 1,884.1
Liabilities and Shareholders' Equity Current liabilities: Short-term and current portion of long-term debt $ 124.2 $ 84.8 Accounts payable 164.7 178.6 Accrued liabilities 334.9 323.4
Total current liabilities 623.8 586.8
Long-term debt 374.9 395.2 Other long-term liabilities 146.1 139.8 Shareholders' equity: Common stock 62.1 62.1 Capital in excess of par value 190.7 192.2 Retained earnings 861.9 773.3 Cumulative translation adjustment 34.9 42.4 Cost of unallocated ESOP shares (27.0) (37.6) Minimum pension liability (2.6) (5.0) Treasury stock at cost (301.6) (265.1)
Total shareholders' equity 818.4 762.3
$ 1,963.2 $ 1,884.1
-0-
Avery Dennison
Condensed Consolidated Statement of Cash Flow
(In millions)
(Unaudited)
Three Months Ended
Mar 30, 1996 Apr 1, 1995
Operating Activities:
Net income $ 40.0 $ 34.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 24.9 26.1 Amortization 2.6 3.5 Net gain on divestitures and restructuring charges - - Deferred taxes 6.4 0.9 Changes in assets and liabilities, net of the effect of foreign currency translation and business divestitures (74.6) (49.3) Net cash (used in) provided by operating activities (0.7) 15.7 Investing Activities: Purchase of property, plant and equipment (38.3) (36.7) Proceeds from sale of assets and business divestitures 3.8 0.2 Other 2.4 (6.5) Net cash used in investing activities (32.1) (43.0) Financing Activities: Net increase in long-term debt 40.9 47.3 Net increase in short-term debt 8.7 7.0 Dividends paid (15.9) (14.4) Purchase of treasury stock (25.1) (14.5) Other 2.5 2.0 Net cash provided by financing activities 11.1 27.4 Effect of foreign currency translation on cash balances 0.0 0.2 (Decrease) increase in cash and cash equivalents (21.7) 0.3 Cash and cash equivalents, beginning of period 27.0 3.1 Cash and cash equivalents, end of period $ 5.3 $ 3.4 CONTACT: Avery Dennison Media Relations: 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. , 818/304-2118 dixondiane@averydennison.com or Investor Relations Investor relations The process by which the corporation communicates with its investors. : 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, 818/304-2001 investorcom@averydennison.com |
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