Avery Dennison Q4 Profit Down - Update

(RTTNews) - Avery Dennison Corp. (AVY) Friday reported a drop in profit for the fourth quarter, hurt mainly by the absence of a profit from discontinue operations from last year. However, earnings from continuing operations improved from last year, driven by 7 percent revenue growth.

Pasadena, California-based Avery Dennison's fourth-quarter profit dropped to $42.7 million or $0.43 per share from $49.0 million or $0.48 per share last year.

Last year's results included income from discontinued operations of $21.0 million. On July 1, 2013, the company completed the sale of its Office and Consumer Products and Designed and Engineered Solutions businesses.

Income from continuing operations rose to $44.7 million or $0.45 per share from $28.0 million or $0.28 per share last year. Adjusted earnings from continuing operations grew to $0.69 per share from $0.48 per share in the year-ago quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Avery Dennison, which makes pressure-sensitive materials, said sales for the fourth quarter grew to $1.58 billion from last year's $1.48 billion last year. Five analysts estimated revenues of $1.53 billion for the quarter.

Pressure sensitive materials sales rose 8 percent to $1.15 billion, and accounted for majority of the business. Retail Branding and Information Solutions sales rose 2 percent, and sales from other specialty converting business improved 15 percent, year-over-year.

Looking forward to the full year 2014, the company expects earnings from continuing operations of $2.60 to $2.90 per share and adjusted earnings of $2.90 to $3.20 per share.

Analysts currently see full year 2014 earnings of $3.07 per share.

AVY is currently trading at $48.94, down $0.78 or 1.58%, on the New York Stock Exchange.