Avery Dennison announces strong Q2 results; double digit sales growth
Thursday, July 29, 2010
Press release from the issuing company
Pasadena, Calif. - Avery Dennison Corporation today announced preliminary, unaudited second quarter 2010 results.
"Avery Dennison delivered a strong second quarter, with double-digit sales growth and solid margin expansion," said Dean A. Scarborough, Avery Dennison chairman, president and CEO. "I'm especially pleased with the improved performance of Retail Information Services, which expanded operating margin above pre-recession levels. Our core pressure-sensitive materials businesses had solid results, including double-digit sales growth in all regions, and our investments in marketing have enabled us to convert more brand owners to pressure-sensitive solutions from other labeling technologies.
"The second half of the year will be more challenging than the second quarter, which is traditionally our strongest," Scarborough said. "While we expect solid second-half revenue growth, margins will come under pressure from rising raw material costs and Office Products' investments in innovation and demand creation. At the same time, we are on track to exceed our original target for strong free cash flow.
"We are confident about our future," Scarborough said. "We have leadership positions in rapidly growing emerging markets, which continue to lead the global economic recovery. As the world's leading producer of RFID inlays, we're excited by the accelerating growth in demand for item-level retail tagging solutions and other applications. Our investments in developing branding and information solutions are starting to pay off in innovative products and solutions, better service and stronger customer relationships. We are well positioned for long-term profitable growth."
Second Quarter 2010 Results by Segment
Pressure-sensitive Materials (PSM)
Retail Information Services (RIS)
Office and Consumer Products (OCP)
Other specialty converting businesses
Consolidated Items and Actions
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