11.02.15
Avery Dennison announced preliminary, unaudited results for its third quarter ended Oct. 3, 2015 3Q15 Net sales declined approximately 6% to $1.47 billion, up approximately 5% on organic basis. The company also reported 3Q15 adjusted EPS of $0.87.
“I’m happy to report another strong quarter, keeping us on track to achieve our financial targets for the year,” said Dean Scarborough, Avery Dennison chairman and CEO. “Sales growth for both of our core businesses was within our long-term target range, driving total company organic growth of five percent, with 160 basis points of margin expansion.
“Our Pressure-sensitive Materials segment once again delivered strong results, reflecting the continued execution of our strategy to leverage our scale and strengths in innovation, quality, and service across the entire portfolio,” Scarborough added. “Retail Branding and Information Solutions also made solid progress in the quarter, in terms of both top-line growth and margin improvement, with particular strength in radio-frequency identification products. The team has begun to execute a new strategy to accelerate growth in the core business through a more competitive, faster, and simpler model that will better serve the needs of our customers in all segments of the market.
“Overall, I’m pleased with the progress our team has made. We delivered double-digit growth in adjusted earnings per share, in spite of challenging economic conditions in many parts of the world and significant headwinds from currency translation. I remain confident that the consistent execution of our strategies, including the RBIS transformation, will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline.”
Pressure-sensitive Materials (PSM) sales increased approximately 5%. Within the segment, sales in both Label and Packaging Materials and combined Graphics and Performance Tapes increased mid-single digits. Operating margin improved 190 basis points to 12.0%.
Retail Branding and Information Solutions (RBIS) sales were up approximately 4%. Operating margin increased 140 basis points to 6.8%.
“I’m happy to report another strong quarter, keeping us on track to achieve our financial targets for the year,” said Dean Scarborough, Avery Dennison chairman and CEO. “Sales growth for both of our core businesses was within our long-term target range, driving total company organic growth of five percent, with 160 basis points of margin expansion.
“Our Pressure-sensitive Materials segment once again delivered strong results, reflecting the continued execution of our strategy to leverage our scale and strengths in innovation, quality, and service across the entire portfolio,” Scarborough added. “Retail Branding and Information Solutions also made solid progress in the quarter, in terms of both top-line growth and margin improvement, with particular strength in radio-frequency identification products. The team has begun to execute a new strategy to accelerate growth in the core business through a more competitive, faster, and simpler model that will better serve the needs of our customers in all segments of the market.
“Overall, I’m pleased with the progress our team has made. We delivered double-digit growth in adjusted earnings per share, in spite of challenging economic conditions in many parts of the world and significant headwinds from currency translation. I remain confident that the consistent execution of our strategies, including the RBIS transformation, will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline.”
Pressure-sensitive Materials (PSM) sales increased approximately 5%. Within the segment, sales in both Label and Packaging Materials and combined Graphics and Performance Tapes increased mid-single digits. Operating margin improved 190 basis points to 12.0%.
Retail Branding and Information Solutions (RBIS) sales were up approximately 4%. Operating margin increased 140 basis points to 6.8%.