Avery Dennison Suspends FY20 EPS View; Sees Lower Earnings, Sales

(RTTNews) - While reporting first-quarter results on Wednesday, adhesive manufacturing company Avery Dennison Corp. (AVY) said it has suspended its fiscal 2020 earnings per share guidance provided in January as the impact of the Covid-19 pandemic on global demand for the company's products cannot be reasonably estimated at this time.

The company currently expects sales and earnings to decline in 2020 on lower demand, with a disproportionate impact to its second quarter results, followed by sequential improvement in the second half.

Second-quarter organic sales would decline 15 percent to 20 percent from the prior year.

The company noted that historically, its businesses have rebounded quickly in the year following a recession.

In general, the company expects the LPM business to fare relatively better and RBIS and Graphics Solutions to fare worse than these businesses did during 2008-2009.