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Avery's Net Income Rises 5%; Job Cuts Announced

The firm says sales were weak in North America and Western Europe but strong elsewhere.

October 22, 2003|Ronald D. White | Times Staff Writer

Label maker Avery Dennison Corp. said Tuesday that its third-quarter earnings rose 5% because of growth in Eastern Europe, Asia and Latin America.

The Pasadena-based company said its quarterly profit was $66.5 million, or 67 cents a share, up from $63.1 million, or 64 cents, in the same quarter last year.

Avery, which makes office supplies and labels, including self-adhesive stamps for the Postal Service, reported that its sales rose 9% in the quarter to $1.2 billion from $1.1 billion a year earlier.

But the company also said it would trim its workforce by an additional 500 to 600 jobs by next year, mostly in North America, raising total job cuts to 1,500 to 1,600 since mid-2002. Executives said the job reductions would save Avery as much as $25 million next year and $35 million in 2005.

In September, Avery lowered its earnings guidance by 5 cents a share to 65 cents to 70 cents in part because of weak sales overseas.

"As we indicated last month, weakened business conditions, particularly in markets in North America and Western Europe, persisted throughout the third quarter and affected virtually all of our core businesses," Avery Chairman and Chief Executive Philip M. Neal said.

The company predicted that its fourth-quarter earnings would be 56 cents to 60 cents a share.

Avery shares fell $2.22 to $50.28 on the New York Stock Exchange.

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