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California and the West | EARNINGS ROUNDUP

Avery Dennison Reports Loss on Restructuring

January 25, 2006|From Bloomberg News

Avery Dennison Corp., the world's biggest label maker, had a fourth-quarter loss after restructuring and divestiture-related expenses and said it would cut 80 to 100 more jobs.

The net loss was $6.9 million, or 7 cents a share, contrasted with net income of $83.6 million, or 83 cents, a year earlier. Sales fell 4% to $1.36 billion, the company said.

Without the costs, the Pasadena-based company said earnings per share were 92 cents as a result of a lower tax rate and reduced operating expenses.

"The charges that reduced fourth-quarter reported earnings reflect our steps to fine-tune our portfolio and improve our global operating efficiencies," Chief Executive Dean Scarborough said.

Additional restructuring in 2006 probably will reduce earnings by $10 million to $15 million in the first half of the year, the company said. Divestitures of several "nonstrategic, low-margin product lines" are also in the works.

Avery Dennison shares rose $1.77 to $59.20.

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