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AVERY DENNISON ANNOUNCES SECOND QUARTER RESULTS

 PASADENA, Calif., July 27 /PRNewswire/ -- Avery Dennison Corp. (NYSE: AVY) today reported results for the quarter ended July 3, 1993:
 -- Earnings per share increased 5 percent to $.39 per share, from $.37 per share in the same quarter last year.
 -- Net income increased to $22.8 million from $22.3 million in the same period last year.
 Sales declined slightly to $662.2 million from $667.5 million. Excluding the effects of foreign currency translation, sales increased 1 percent.
 Earnings per share for the first six months increased 13 percent to $.79 per share from $.70 per share in 1992. Net income increased 8 percent to $46.1 million, compared to $42.6 million. Excluding the effects of foreign currency translation, sales increased 1 percent. Reported sales were essentially unchanged at $1.3 billion.
 Charles D. Miller, chairman and chief executive officer, said, "Operating results for the second quarter were mixed. Our domestic operations reported an increase in sales and profits while our European operations reported a decline in sales and profitability due to the continuing weakness of the European economies. Cash flow from operations continued strong due primarily to our very successful working capital reduction programs. The company repurchased 770,000 shares of Avery Dennison stock during the quarter."
 Miller said, "Looking ahead, we remain cautious about the sales and profit outlook for the third quarter, due to the anticipated effects of foreign currency translation and the continuing economic recession throughout Europe."
 Avery Dennison, based in Pasadena, is a leader in pressure-sensitive adhesives and materials, office products, labels, tags, retail systems and specialty chemicals. With 16,300 employees in 200 manufacturing facilities and sales offices in 24 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
 (In millions, except per share amounts)
 Three Months Ended Six Months Ended
 July 3, July 4, July 3, July 4,
 1993 1992 1993 1992
 Net sales $662.2 $667.5 $1,328.7 $1,337.3
 Cost of products sold 455.0 448.4 911.5 908.0
 Gross profit 207.2 219.1 417.2 429.3
 Marketing, general and
 administrative expense 161.2 171.1 325.6 337.7
 Operating profit 46.0 48.0 91.6 91.6
 Interest expense 10.4 11.5 20.2 21.8
 Income before taxes
 on income 35.6 36.5 71.4 69.8
 Taxes on income 12.8 14.2 26.4 27.2
 Income before
 cumulative effect of
 changes in accounting
 principles 22.8 22.3 45.0 42.6
 Cumulative effect of
 changes in accounting
 principles(a) --- --- 1.1 ---
 Net income $22.8 $22.3 $46.1 $42.6
 Per common share amounts:
 Income before cumulative
 effect of changes in
 accounting principles $0.39 $0.37 $0.77 $0.70
 Cumulative effect of
 changes in accounting
 princples(a) --- --- 0.02 ---
 Net income $0.39 $0.37 $0.79 $0.70
 Average shares
 outstanding 58.5 60.8 58.6 60.9
 (a) Cumulative effect of changes in accounting principles:
 Accounting for income taxes - $.28 per share 16.3
 Accounting for postretirement benefits,
 net of tax - ($.24) per share (14.2)
 Accounting for postemployment benefits,
 net of tax - ($.02) per share (1.0)
 Cumulative effect of changes in
 accounting principles - $.02 per share 1.1
 AVERY DENNISON
 Condensed Consolidated Balance Sheet
 (In millions)
 July 3, July 4,
 1993 1992
 Assets
 Current assets:
 Cash and cash equivalents $0.4 $4.4
 Trade accounts receivable 387.6 423.0
 Inventories 218.7 243.4
 Other current assets 100.1 78.2
 Total current assets 706.8 749.0
 Property, plant and equipment, net 751.7 790.1
 Intangibles resulting from business
 acquisitions, net 131.7 145.5
 Other assets 120.0 88.9
 Total $1,710.2 $1,773.5
 Liabilities and Shareholders' Equity
 Current liabilities:
 Short-term and current portion
 of long-term debt $67.6 $94.6
 Accounts payable 135.9 147.7
 Accrued liabilities 237.9 193.9
 Total current liabilities 441.4 436.2
 Long-term debt 369.7 372.2
 Other long-term liabilities 124.9 122.1
 Shareholders' equity:
 Common stock 62.1 62.1
 Capital in excess of par value 195.5 195.0
 Retained earnings 686.8 654.3
 Cumulative translation adjustment 0.4 44.0
 Cost of unallocated ESOP shares (59.9) (78.2)
 Treasury stock at cost (110.7) (34.2)
 Total shareholders' equity 774.2 843.0
 Total $1,710.2 $1,773.5
 AVERY DENNISON
 Condensed Consolidated Statement of Cash Flow
 (In millions)
 Six months ended
 July 3, July 4,
 1993 1992
 Operating Activities:
 Net income $46.1 $42.6
 Depreciation 40.8 41.0
 Amortization 4.6 5.1
 Deferred taxes (3.3) 3.3
 Cumulative effect of changes
 in accounting principles (1.1) ---
 Net decrease in assets
 and liabilities net of the effect
 of foreign currency translation
 and divested operations (33.0) (81.9)
 Net cash provided by
 operating activities 54.1 10.1
 Investing Activities:
 Purchase of property,
 plant and equipment (38.4) (35.6)
 Proceeds from sale of assets
 and business divestitures 0.5 19.2
 Other 8.2 5.9
 Net cash used in investing
 activities (29.7) (10.5)
 Financing Activities:
 Net increase in long-term debt 42.0 41.6
 Net decrease in short-term debt (16.9) (2.4)
 Dividends paid (25.8) (24.4)
 Purchase of treasury stock (27.2) (15.4)
 Net cash used in financing
 activities (27.9) (0.6)
 Effect of foreign currency
 translation on cash balances --- 0.1
 Decrease in cash
 and cash equivalents (3.5) (0.9)
 Cash and cash equivalents,
 beginning of period 3.9 5.3
 Cash and cash equivalents,
 end of period $0.4 $4.4
 -0- 7/27/93
 /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

JL-MF -- LA014 -- 6165 07/27/93 11:01 EDT
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Date:Jul 27, 1993
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