"The long-term fundamentals of our core businesses remain strong," O'Bryant said. "We have a solid position in rapidly growing emerging markets, where we currently generate more than 25 percent of our sales. We have leading market share positions in all of our major businesses, supported by powerful brands and other sources of competitive advantage, including economies of scale."
Avery Dennison completed the acquisition of Paxar on June 15, 2007 and is merging the company with its Retail Information Services segment (RIS), which serves the dynamic global retail information and brand identification market. The Company estimates cost synergies from the transaction of $115 to $125 million, and EPS accretion of $0.40 to $0.50 in 2008, rising to $0.90 to $1.00 when fully integrated.
Commenting on the RFID business, O'Bryant indicated that the Company anticipates significant long-term growth for this new technology, but is paring expenses to match near-term demand expectations.
Through both revenue growth and cost reduction, the Company expects to cut the annual loss from RFID in half in 2008. The Company announced a couple of agreements earlier this year that represent solid steps forward, including one with Motorola to supply a portion of their inlays.
Avery Dennison Corporation
marketing@alchempro.com
