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AVERY DENNISON ANNOUNCES 1992 EARNINGS UP 27 PERCENT AND EARNINGS PER SHARE UP 30 PERCENT OVER PRIOR YEAR

 PASADENA, Calif., Feb. 2 /PRNewswire/ -- Avery Dennison Corp. (NYSE: AVY) today reported results for the fourth quarter and fiscal year ended Dec. 31, 1992.
 For the fourth quarter:
 -- Earnings per share increased 10 percent to $.32 per share, compared to $.29 per share in 1991. Net income increased to $18.9 million, compared to $17.7 million in 1991.
 -- Sales decreased 3 percent to $629.7 million, compared to $649.4 million in 1991. The company's fourth quarter of 1992 had one week less than the comparable period of 1991. On a comparable basis, excluding currency changes and the calendar impact, sales increased 3 percent.
 For the year:
 -- Earnings per share increased 30 percent to $1.33 per share, compared to $1.02 per share in 1991.
 -- Net income increased 27 percent to $80.1 million, compared to $63 million in 1991.
 -- Sales for 1992 increased 3 percent to $2.62 billion, compared to $2.55 billion in 1991. Divested operations and changes in foreign currency rates had a negligible effect on sales for the year.
 Charles D. Miller, chairman and chief executive officer, said that Avery Dennison's results for the year were excellent.
 "We achieved solid growth in sales and earnings despite the weak worldwide economy that particularly affected Europe during the last half of the year. Our initiatives to improve service to our customers and to increase operating effectiveness contributed to our performance," Miller stated.
 "Our office products businesses reported solid net income growth on a slight sales increase. The Avery-brand business in the United States had a very good year.
 "Our pressure-sensitive adhesives and materials businesses reported strong sales and profit improvement for the year. Continued growth in the U.S. roll and film materials businesses and early signs of a turnaround in our European roll and specialty industrial tape businesses contributed to the excellent performance.
 "Our Product Identification and Control Systems sector reported lower net income on slightly lower sales. We continued to experience poor results in our businesses serving the domestic apparel and retail markets. Reflecting the weak European economy, our international label businesses reported lower profits on slightly increased sales. Meanwhile, our domestic label, fastener and overseas service bureau businesses reported improved sales and profits."
 Avery Dennison, based in Pasadena, is a leader in pressure- sensitive adhesives and materials, office products, labels, tags, retail systems and specialty chemicals. With 16,550 employees in 220 manufacturing facilities and sales offices in 25 countries, the company serves worldwide consumer and industrial markets with products that mark, decore
 (In millions, except per share amounts)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Net sales $629.7 $649.4 $2,622.9 $2,545.1
 Cost of products sold 428.5 441.0 1,784.7 1,748.9
 Gross profit 201.2 208.4 838.2 796.2
 Marketing, general and
 administrative expense 162.2 169.7 665.7 653.9
 Operating profit 39.0 38.7 172.5 142.3
 Interest expense 9.1 8.8 42.3 37.5
 Income before taxes
 on income 29.9 29.9 130.2 104.8
 Taxes on income 11.0 12.2 50.1 41.8
 Net income $18.9 $17.7 $80.1 $63.0
 Net income per share
 of common stock $.32 $.29 $1.33 $1.02
 Average shares
 outstanding 59.4 61.8 60.4 61.9
 AVERY DENNISON
 Condensed Consolidated Balance Sheet
 (In millions)
 Dec. 31,
 1992 1991
 Assets
 Current assets:
 Cash and cash equivalents $3.9 $5.3
 Trade accounts receivable 364.3 364.8
 Other receivables 25.5 33.1
 Inventories 225.1 253.1
 Prepaid expenses 16.9 18.3
 Deferred taxes 25.6 25.2
 Refundable income taxes --- 0.7
 Total current assets 661.3 700.5
 Property, plant and equipment, net 779.9 814.2
 Intangibles resulting from business
 acquisitions, net 137.9 146.7
 Other assets 104.9 79.0
 Total $1,684.0 $1,740.4
 Liabilities and Shareholders' Equity
 Current liabilities:
 Short-term and current portion
 of long-term debt $92.7 $94.5
 Accounts payable and accrued liabilities 340.3 371.8
 Restructuring costs --- 8.2
 Income tax payable 5.7 ---
 Total current liabilities 438.7 474.5
 Long-term debt 334.8 329.5
 Deferred taxes 67.6 80.9
 Other long-term liabilities 40.3 30.5
 Shareholders' equity:
 Common stock 62.1 62.1
 Capital in excess of par value 196.8 195.0
 Retained earnings 666.6 636.1
 Cumulative translation adjustment 29.6 28.8
 Cost of unallocated ESOP shares (64.9) (78.2)
 Treasury stock at cost (87.6) (18.8)
 Total $1,684.0 $1,740.4
 AVERY DENNISON
 Condensed Consolidated Statement of Cash Flow
 (In millions)
 Year Ended Dec. 31,
 1992 1991
 Operating Activities:
 Net income $80.1 $63.0
 Depreciation 83.8 83.1
 Amortization 10.1 9.2
 Deferred taxes (13.3) (6.6)
 Net decrease in assets
 and liabilities net of the effect
 of foreign currency translation
 and divested operations 7.1 81.8
 Net cash provided by
 operating activities 167.8 230.5
 Investing Activities:
 Purchase of property,
 plant and equipment (87.8) (122.5)
 Proceeds from sale of assets
 and business divestitures 26.5 12.9
 Other 7.0 7.6
 Net cash used in investing
 activities (54.3) (102.0)
 Financing Activities:
 Net increase (decrease)
 in long-term debt 10.6 (32.1)
 Net decrease in short-term debt (1.9) (29.3)
 Dividends paid (49.6) (47.1)
 Purchase of treasury stock (74.0) (20.8)
 Net cash used in financing
 activities (114.9) (129.3)
 Effect of foreign currency
 translation on cash balances --- (0.4)
 Decrease in cash
 and cash equivalents (1.4) (1.2)
 Cash and cash equivalents,
 beginning of period 5.3 6.5
 Cash and cash equivalents,
 end of period $3.9 $5.3
 -0- 2/2/93
 /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

JB-LS -- LA004 -- 1786 02/02/93 11:02 EST
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Date:Feb 2, 1993
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