Labeling expert Avery Dennison Corporation reported first quarter diluted earnings per share of $0.69, compared with $0.57 per share for the first quarter of 2005.
The increase in earnings reflected improvements in the Company's gross profit margin and operating expense ratio, as well as the benefit from an anticipated reduction in its tax rate relative to the same quarter last year.
In both years, first quarter results included restructuring and asset impairment charges and a net loss from discontinued operations; 2005 results also included a gain on sale of assets and transition costs related to a plant closure.
The net effect of these items totaled approximately $0.06 per share in 2006 and $0.05 per share in the prior year.
Excluding these items, first quarter earnings per share from continuing operations increased by 21 percent over the same quarter last year.
Outlook for the Year
Reflecting first quarter results, Avery Dennison adjusted its full year earnings guidance to a range of $3.55 to $3.80 per share before charges associated with ongoing restructuring efforts.
The Company previously expected earnings to be in the range of $3.45 to $3.80 per share before restructuring charges.
Avery Dennison is a global leader in pressure-sensitive labeling materials, office products and retail tag, ticketing and branding systems.
Based in Pasadena, Avery Dennison is a FORTUNE 500 company with 2005 sales of $5.5 billion.
Avery Dennison employs approximately 22,000 individuals in 49 countries worldwide who apply the Company's technologies to develop, manufacture and market a wide range of products for both consumer and industrial markets.
Avery Dennison Corporation
marketing@alchempro.com
