Avery Dennison Reports Merger, Earnings Surprise

Avery Dennison Corp. on Wednesday announced first quarter earnings that beat expectations as well as an acquisition of a European company with Beverly Hills-based Platinum Equity. The Glendale label and packaging materials supplier reported net income of $89.6 million (98 cents a share) in the fiscal first quarter ended April 2, compared to $71.9 million (78 cents) for the same quarter last year. Adjusted earnings equaled 94 cents a share, exceeding analysts’ expectations of 86 cents, according to Thomson Financial Network. Net sales were $1.49 billion, down 3 percent. “We’re off to a very good start to the year,” Dean Scarborough, chief executive of Avery Dennison, said in a statement. “Both of our core businesses delivered solid organic sales growth and significant margin expansion, driving mid-teens growth in adjusted EPS, above our expectations for the quarter.” Avery Dennison also said it has entered into an agreement with private equity firm Platinum Equity to acquire European label manufacturer Mactac for approximately $226 million including assumed debt.