“Second quarter results were in line with our overall expectations for both sales and earnings,” said Dean Scarborough, Avery Dennison chairman, president and CEO.
“Pressure-sensitive Materials delivered better-than-expected sales growth, driven by strong volume growth in Europe and the emerging markets. Adjusted operating margin was back above 10%, within our long-term target range, and we are on track with our consolidation of operations in Europe.
“While sales were down modestly for Retail Branding and Information Solutions, reflecting soft market conditions in the U.S., the RBIS team continued to make solid progress against its long-term margin improvement goal, and reported another quarter of strong earnings growth,” Scarborough added. “I want to thank all our employees for their outstanding contributions to innovation, service excellence, and productivity improvement,” said Scarborough. “With two solid quarters under our belt, we have narrowed our range of guidance for full-year adjusted earnings per share growth to 12 to 16%. We look forward to continuing to deliver exceptional value for our customers, employees, and shareholders.”
Pressure-sensitive Materials (PSM) sales increased approximately 6%. Within the segment, Label and Packaging Materials sales increased mid-single digits. Combined sales for Graphics, Reflective, and Performance Tapes increased low double digits.
Retail Branding and Information Solutions (RBIS) segment sales decreased approximately 1%, with increased demand from Europe-based retailers and brands more than offset by decreased demand from U.S.-based retailers and brands