Avery Dennison Corp. on Wednesday reported second-quarter results that exceeded analyst expectations on earnings and matched expectations on revenue, citing organic growth in its pressure-sensitive product label business.
The Glendale label and packaging materials supplier reported adjusted net income of $63.3 million (91 cents a share) in the fiscal second quarter ended July 4, compared to $42.5 million (80 cents) for the same quarter last year. Revenue dropped 6 percent to $1.5 billion.
Analysts on average expected earnings of 88 cents a share on revenue of $1.5 billion, according to Thomson Financial Network.
The company’s largest segment, its Pressure Sensitive Materials division, makes labels for diverse products, from alcoholic beverages to personal care items and accounts for more than 70 percent of its total sales. The division increased sales 4.5 percent to $1.1 billion, while sales for the retail branding and information segment declined 7 percent to $384 million.
“Pressure-sensitive materials delivered great results through the consistent execution of our strategy, leveraging our scale and strengths in innovation, quality and service,” Dean Scarborough, Avery Dennison chief executive, said in a statement.
Shares closed down 27 cents, or a fraction of a percent, to $60.86 on the New York Stock Exchange.