PASADENA, Calif., Avery Dennison Corporation today announced that the Company expects to report unaudited second quarter 2011 net sales of approximately $1.7 billion, a decline versus the same period last year of 2 percent excluding the impact of currency. Unit volume was down an estimated 5 percent, driven primarily by declines in the Company's largest segments--Pressure-sensitive Materials and Retail Branding and Information Solutions. Second quarter results for the Company's Office and Consumer Products segment were in line with internal expectations.
The Company expects second quarter earnings per share to be between $0.64 and $0.69, and adjusted (non-GAAP) earnings per share to be between $0.74 and $0.79. These estimates reflect lower-than-expected volume, partially offset by lower employee-related expenses. Actual results are subject to finalizing several items, including a projected tax rate for the year in the high 20 percent range. Year-to-date free cash flow through the second quarter is expected to be approximately negative $165 million, reflecting lower operating results.
For the full-year 2011, the Company now expects earnings per share between $2.25 and $2.55, and adjusted (non-GAAP) earnings per share between $2.45 and $2.75, assuming net sales of between $6.8 and $6.9 billion. These estimates reflect a reduction from the Company's previous earnings per share guidance, primarily due to lower volumes in the Company's largest segments.
"In the second quarter, volume in our two largest segments was negatively impacted as consumer packaged goods companies and apparel retailers and brands became more cautious about consumer sentiment and the impact of rising retail prices to offset inflation," said Dean A. Scarborough, Avery Dennison chairman, president and CEO. "We are taking actions to offset the declines, and we expect to continue the momentum shown in 2010 and earlier this year when conditions improve."