The US company Avery Dennison Corporation reported record figures for the quarter ended 28 June 1997. Fully diluted earnings per share increased 24% to US$ 0.47 per share from US$ 0.38 per share for t…
The US company Avery Dennison Corporation reported record figures for the quarter ended 28 June 1997. Fully diluted earnings per share increased 24% to US$ 0.47 per share from US$ 0.38 per share for the same quarter last year. Net income increased 19% to US$ 49.6 million from US$ 41.6 million in the same period last year. Unit sales volume grew 11.3%. Sales increased 8.3% to US$ 845 million, excluding currency translation effects. Reported sales increased 5.9% from US$ 797.7 million and were reduced by paper price deflation and currency. Annualised return on shareholders“ equity increased to 23.7% and annualised return on total capital increased to 17.5%, the highest returns in over 30 years. Fully diluted earnings per share for the first six months increased 23% to US$ 0.92 per share from US$ 0.75 per share in 1996. Net income increased 20% to US$ 97.8 million from US$ 81.6 million. Unit volume growth was 10.5% for the first six months of 1997. Excluding the impact of currency, sales increased 7% to US$ 1.67 billion. Reported sales were impacted by paper price deflation and currency. Charles D. Miller, Chairman and CEO, said: “Our second-quarter and first-half results are record Avery Dennison results for these periods and demonstrate our commitment to create increased shareholder value. Strong sales growth reflects the company“s expansion into new geographic markets, stronger demand in US markets and continued benefits from new product introductions. Gross margin expanded over the prior year as a result of improved productivity and product mix. Our focus on the principles of value-based management continues to generate positive results”. He went on to say, “Looking ahead, our expectations for the third quarter are positive, and we expect sales and profit momentum to continue into the second half of the year.” Thanks to the rise in consumer spending in developing countries and to the greater use of PCs and bar codes, Avery Dennison is, in fact, in a favourable position for further international growth. New distribution centres are now open in the Asia/Pacific region, South America, and Europe; business centres have been established in Thailand and Indonesia, and planning has been completed for a US$ 65 million manufacturing plant in Germany. On 24 July the board of directors of the US labelling technology group declared a quarterly cash dividend of US$ 0.17 per share. The dividend is payable on 17 September 1997, to shareholders of record at the close of business on 3 September 1997.