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AVERY DENNISON ANNOUNCES SECOND QUARTER RESULTS

 AVERY DENNISON ANNOUNCES SECOND QUARTER RESULTS
 PASADENA, Calif., July 21 /PRNewswire/ -- Avery Dennison Corp.


(NYSE: AVY) today reported earnings per share increased 48 percent to $.37 per share for the second quarter ended June 30, 1992, compared to $.25 per share in the same quarter last year. Net income increased 43 percent to $22.3 million, compared to $15.6 million in the same period last year. Sales increased 6.5 percent to $667.5 million from $626.6 million.
 Earnings per share for the first six months increased 32 percent to $.70 per share compared to $.53 per share in 1991. Net income increased 30 percent to $42.6 million compared to $32.7 million. Sales increased 4 percent to $1.34 billion compared to $1.29 billion.
 Charles D. Miller, chairman and chief executive officer, said, "Our positive operating results for the second quarter are gratifying in this prolonged period of slow economic growth. Overall, our core materials and office products businesses produced solid sales and profit growth.
 -- "Our paper and film roll materials businesses in both North America and Europe reported excellent sales growth and improved profits. Our worldwide specialty tape businesses, as well as our U.S. marking and decorative films businesses, showed solid improvement.
 -- "In the office products sector, our Avery, Dennison and K&M brand businesses in the U.S. reported strong results due primarily to new products and merger-related synergies. In Europe and Canada, results were at or below prior-year levels.
 -- "Our identification systems businesses performed above the prior year's results, but below expectations primarily because of continued weakness in the apparel and retail department store markets. Aggressive cost control and reduction actions continue. Our label converting businesses in the U.S. showed strong improvement, while the European label businesses were affected by the slower economies in Germany and France."
 Miller said, "Our merger integration program is virtually complete. Our European materials business turnaround has made significant progress but still has a long way to go. Looking ahead, we expect to see slow economic growth during the last half of the 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 16,900 employees in 220 manufacturing facilities and sales offices in 25 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
 (Unaudited)
 (In millions, except per share amounts)
 Three months ended Six months ended
 June 30, June 30,
 1992 1991 1992 1991
 Net sales $667.5 $626.6 $1,337.3 $1,286.5
 Cost of products sold 448.4 429.6 908.0 885.1
 Gross profit 219.1 197.0 429.3 401.4
 Marketing, general and
 administrative expense 171.1 161.9 337.7 328.2
 Operating profit 48.0 35.1 91.6 73.2
 Interest expense 11.5 9.3 21.8 19.2
 Income before taxes
 on income 36.5 25.8 69.8 54.0
 Taxes on income 14.2 10.2 27.2 21.3
 Net income $22.3 $15.6 $42.6 $32.7
 Net income per share
 of common stock $0.37 $0.25 $0.70 $0.53
 Average shares
 outstanding 60.8 62.0 60.9 62.0
 AVERY DENNISON
 Condensed Consolidated Balance Sheet
 (Unaudited)
 (In millions)
 June 30,
 ASSETS 1992 1991
 Current assets:
 Cash and cash equivalents $4.4 $4.7
 Trade accounts receivable 423.0 381.5
 Other receivables 35.4 37.8
 Inventories 243.4 271.4
 Prepaid expenses 19.4 21.5
 Deferred taxes 23.4 31.6
 Refundable income taxes --- 5.8
 Total current assets 749.0 754.3
 Property, plant and equipment, net 790.1 768.3
 Intangibles resulting from business
 acquisitions, net 145.5 140.3
 Other assets 88.9 75.9
 Total $1,773.5 $1,738.8
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term and current portion
 of long-term debt $94.6 $93.7
 Accounts payable and accrued
 liabilities 338.1 294.5
 Restructuring costs --- 48.7
 Income tax payable 3.5 ---
 Total current liabilities 436.2 436.9
 Long-term debt 372.2 396.8
 Deferred taxes 84.9 67.3
 Other long-term liabilities 37.2 29.5
 Shareholders' equity:
 Common stock 62.1 62.0
 Capital in excess of par value 195.0 189.9
 Retained earnings 654.3 630.4
 Cumulative translation adjustment 44.0 16.3
 Cost of unallocated ESOP shares (78.2) (90.3)
 Treasury stock at cost (34.2) ---
 Total $1,773.5 $1,738.8
 AVERY DENNISON
 Condensed Consolidated Statement of Cash Flow
 (Unaudited)
 (In millions)
 Six Months Ended June 30,
 1992 1991
 Operating Activities:
 Net income $42.6 $32.7
 Depreciation 41.0 42.5
 Amortization of intangibles 5.1 4.4
 Deferred taxes 3.3 (20.2)
 Net (increase) decrease in assets
 and liabilities net of the effect of
 foreign currency translation and divested
 operations (81.9) 3.0
 Net cash provided by operating activities 10.1 62.4
 Investing Activities:
 Purchase of property, plant and equipment (35.6) (63.1)
 Proceeds from business divestitures 19.2 10.8
 Other 5.9 4.5
 Net cash used in investing activities (10.5) (47.8)
 Financing Activities:
 Net change in long-term debt 41.6 25.8
 Net change in short-term debt (2.4) (19.5)
 Dividends (24.4) (22.5)
 Purchase of treasury stock, net (15.4) ---
 Net cash used in financing activities (0.6) (16.2)
 Effect of foreign currency translation
 on cash balances 0.1 (0.2)
 Decrease in cash and cash equivalents (0.9) (1.8)
 Cash and cash equivalents,
 beginning of period 5.3 6.5
 Cash and cash equivalents, end of period $4.4 $4.7
 -0- 7/21/92
 /CONTACT: Diane B. Dixon (media), 818-304-2118, or Wayne H. Smith (investors), 818-304-2001, both of Avery Dennison/
 (AVY) CO: Avery Dennison Corp. ST: California IN: SU: ERN


KJ -- LA022 -- 1482 07/21/92 16:03 EDT
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