05.01.15
Avery Dennison announced preliminary, unaudited results for its first quarter ended April 4, 2015.
“We’re off to a good start, with earnings above our expectations,” said Dean Scarborough, Avery Dennison chairman and CEO. “Sales were up 3% on an organic basis, reflecting another quarter of solid growth for Pressure-sensitive Materials, and strong sequential improvement for Retail Branding and Information Solutions. Despite the headwind from currency translation, we delivered significant growth in adjusted earnings, and expanded our operating margins through ongoing productivity initiatives and improved product mix.
“We have raised our outlook for full-year adjusted earnings per share, as we expect additional productivity improvement will offset the incremental pressure we’ve seen from a stronger dollar,” Scarborough added. “I am confident that the consistent execution of our strategies for profitable growth, combined with our continued focus on productivity and capital discipline, will enable us to meet our long-term goals.”
Pressure-sensitive Materials (PSM) sales increased approximately 4%. Within the segment, Label and Packaging Materials increased low-single digits. Combined sales of Graphics and Performance Tapes increased mid-single digits.
Retail Branding and Information Solutions (RBIS) sales were up approximately 2%. Operating margin improved 60 basis points to 4.9% as the benefit of productivity initiatives and higher volume more than offset higher employee-related costs.
“We’re off to a good start, with earnings above our expectations,” said Dean Scarborough, Avery Dennison chairman and CEO. “Sales were up 3% on an organic basis, reflecting another quarter of solid growth for Pressure-sensitive Materials, and strong sequential improvement for Retail Branding and Information Solutions. Despite the headwind from currency translation, we delivered significant growth in adjusted earnings, and expanded our operating margins through ongoing productivity initiatives and improved product mix.
“We have raised our outlook for full-year adjusted earnings per share, as we expect additional productivity improvement will offset the incremental pressure we’ve seen from a stronger dollar,” Scarborough added. “I am confident that the consistent execution of our strategies for profitable growth, combined with our continued focus on productivity and capital discipline, will enable us to meet our long-term goals.”
Pressure-sensitive Materials (PSM) sales increased approximately 4%. Within the segment, Label and Packaging Materials increased low-single digits. Combined sales of Graphics and Performance Tapes increased mid-single digits.
Retail Branding and Information Solutions (RBIS) sales were up approximately 2%. Operating margin improved 60 basis points to 4.9% as the benefit of productivity initiatives and higher volume more than offset higher employee-related costs.