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AVERY DENNISON ANNOUNCES THIRD QUARTER RESULTS

 PASADENA, Calif., Oct. 26 /PRNewswire/ -- Avery Dennison Corp. (NYSE: AVY) today reported results for the third quarter ended Oct. 2, 1993:
 -- Earnings per share increased to $.33 per share from $.31 per share in the same quarter last year.
 -- Net income increased to $19.0 million from $18.6 million in the same period last year.
 -- Sales declined to $638.1 million from $655.9 million.
 Currency translation and the European recession had significant negative impacts on the quarter. Foreign sales declined 17 percent, and foreign operating profits declined 39 percent. Excluding the impact of foreign currency translation only, Avery Dennison would have reported the following third quarter results:
 -- Earnings per share up 10 percent.
 -- Net income up 5 percent.
 -- Sales up 3 percent.
 Reported results for the nine months:
 -- Earnings per share increased 11 percent to $1.12 per share compared to $1.01 per share in the same period last year.
 -- Net income increased 6 percent to $65.1 million from $61.2 million last year.
 -- Sales were $1.97 billion, a 1 percent decline from last year. Excluding the effects of foreign currency translation, sales increased 2 percent.
 Charles D. Miller, chairman and chief executive officer, said, "Third quarter net income improved despite the difficult European recession and the negative impact of foreign currency translation. Our efforts to reduce inventories, control costs, and speed up customer service continue to improve profitability. Cash flow from operations continued strong due primarily to our successful working capital reduction programs. The company repurchased 731,000 shares of Avery Dennison stock during the quarter.
 "While we remain cautious about the sales and profit outlook for the fourth quarter due to the anticipated effects of foreign currency translation and the continuing economic recession throughout Europe, we expect improved fourth quarter results compared to last 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 16,000 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
 Consolidated Statement of Income
 (In millions, except per share amounts)
 Three Months Ended Nine Months Ended
 Oct. 2, Oct. 3, Oct. 2, Oct. 3,
 1993 1992 1993 1992
 Net sales $638.1 $655.9 $1,966.8 1,993.2
 Cost of products
 sold 439.2 448.2 1,350.7 1,356.2
 Gross profit 198.9 207.7 616.1 637.0
 Marketing, general
 and administrative
 expense 157.0 165.8 482.6 503.5
 Operating profit 41.9 41.9 133.5 133.5
 Interest expense 11.7 11.4 31.9 33.2
 Income before taxes
 on income 30.2 30.5 101.6 100.3
 Taxes on income 11.2 11.9 37.6 39.1
 Income before
 cumulative effect
 of changes in
 accounting principles 19.0 18.6 64.0 61.2
 Cumulative effect of
 changes in accounting
 principles(a) --- --- 1.1 ---
 Net income $19.0 $18.6 $65.1 $61.2
 Per common share
 amounts:
 Income before cumulative
 effect of changes in
 accounting principles $.33 $.31 $1.10 $1.01
 Cumulative effect of
 changes in accounting
 principles(a) --- --- .02 ---
 Net income $.33 $.31 $1.12 $1.01
 Average shares
 outstanding 57.8 60.5 58.3 60.8
 (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)
 Oct. 2, Oct. 3,
 1993 1992
 Assets
 Current assets:
 Cash and cash equivalents $.7 $6.3
 Trade accounts receivable 386.8 401.8
 Inventories 195.6 243.3
 Other current assets 91.3 70.2
 Total current assets 674.4 721.6
 Property, plant and
 equipment net 763.4 789.9
 Intangibles resulting
 from business acquisitions
 net 132.2 142.8
 Other assets 124.3 101.2
 Total $1,694.3 $1,755.5
 Liabilities and Shareholders' Equity
 Current liabilities:
 Short-term and current
 portion of long-term debt $80.7 $94.2
 Accounts payable 134.9 142.5
 Accrued liabilities 260.1 202.6
 Total current liabilities 475.7 439.3
 Long-term debt 340.3 364.2
 Other long-term liabilities 117.0 119.1
 Shareholders' equity:
 Common stock 62.1 62.1
 Capital in excess
 of par value 195.1 195.0
 Retained earnings 693.2 660.8
 Cumulative translation
 adjustment .8 53.5
 Cost of unallocated
 ESOP shares (59.9) (78.2)
 Treasury stock at cost (130.0) (60.3)
 Total shareholders' equity 761.3 832.9
 Total $1,694.3 $1,755.5
 AVERY DENNISON
 Condensed Consolidated Statement of Cash Flow
 (In millions)
 Nine months ended
 Oct. 2, 1993 Oct. 3, 1992
 Operating Activities:
 Net income $65.1 $61.2
 Depreciation 60.9 64.3
 Amortization 7.9 7.7
 Deferred taxes (17.0) (.1)
 Cumulative effect of changes
 in accounting principles (1.1) ---
 Net increase/(decrease) in assets
 and liabilities net of the effect
 of foreign currency translation
 and divested operations 19.8 (48.8)
 Net cash provided by
 operating activities 135.6 84.3
 Investing Activities:
 Purchase of property,
 plant and equipment (66.4) (54.6)
 Proceeds from sale of assets
 and business divestitures 4.5 24.2
 Other (1.6) (3.2)
 Net cash used in investing
 activities (63.5) (33.6)
 Financing Activities:
 Net increase
 in long-term debt 11.8 32.8
 Net decrease in short-term debt (1.3) (4.8)
 Dividends paid (38.5) (36.5)
 Purchase of treasury stock (47.3) (41.5)
 Net cash used in financing
 activities (75.3) (50.0)
 Effect of foreign currency
 translation on cash balances --- .3
 (Decrease)/increase in cash
 and cash equivalents (3.2) 1.0
 Cash and cash equivalents,
 beginning of period 3.9 5.3
 Cash and cash equivalents,
 end of period $.7 $6.3
 -0- 10/26/93 R
 /CONTACT: Diane B. Dixon (media), 818-304-2118, or Wayne H. Smith (investor relations), 818-304-2001, Avery Dennison/
 (AVY)


CO: Avery Dennison Corp. ST: California IN: HOU SU: ERN

OP -- LA017R -- 7467 10/27/93 15:59 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
Words:1054
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