Avery Dennison Updates FY15 Guidance To Reflect Rise In Restructuring Charges

(RTTNews) - Avery Dennison Corp. (AVY) announced it has updated the company's previous guidance for 2015 earnings per share, narrowing the range and reducing the midpoint by $0.07 to $2.80 to $2.90, reflecting an increase in estimated restructuring charges.

Excluding an estimated $0.50 per share for restructuring costs and other items, the company has narrowed its expectations for adjusted earnings per share to $3.30 to $3.40, with no change to the midpoint of the range. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.34. Analysts' estimates typically exclude special items.

For full year 2015, the company now estimates that it will realize more than $70 million in pre-tax savings from restructuring, net of transition costs, and incur pre-tax restructuring charges of approximately $65 million, most of which will represent cash costs. This estimate represents an approximately $10 million increase in the company's previous guidance for total restructuring charges for the year, as a result of further cost reduction actions planned as part of the business model transformation underway within RBIS.

For the third-quarter 2015, reported and adjusted EPS was $0.87. Net sales declined approximately 6 percent to $1.47 billion.