Bloomberg News

Avery Dennison Tumbles on Lower 2012 Forecast: Los Angeles Mover

February 01, 2012

Jan. 31 (Bloomberg) -- Avery Dennison Corp., the office- supply manufacturer, dropped the most in more than three months after the company’s preliminary fourth-quarter earnings and 2012 forecast trailed analysts’ estimates.

Avery Dennison, based in Pasadena, California, fell 5.4 percent to $27.15 at the close in New York, for the steepest decline since Oct. 19.

The company, which this month announced plans to sell its office and consumer-products arm, said it probably earned 36 cents per share in the fourth quarter. Profit in 2012 may be $1.80 to $2.15 due to “uncertainty, particularly in Europe,” Chief Financial Officer Mitchell Butier said on a call. Analysts in a Bloomberg survey had estimated 46 cents and $2.72 respectively.

“The earnings dilution from selling the office-products division was much greater than people initially thought,” said Ghansham Panjabi, an analyst with Robert W. Baird & Co. in New York, who has a “neutral” rating on the shares.

Avery Dennison is selling the unit to 3M Co.

David Frail, a spokesman for Avery Dennison, didn’t have a comment.

--Editors: Niamh Ring, Stephen West

-0- Jan/31/2012 20:21 GMT

-0- Jan/31/2012 20:30 GMT

-0- Jan/31/2012 20:31 GMT

To contact the reporter on this story: Alexander Yablon in New York at ayablon@bloomberg.net

To contact the editor responsible for this story: Ville Heiskanen at vheiskanen@bloomberg.net


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