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Avery Dennison earnings down, cuts 550 jobs

Oct 24, 2001 12:00 AM

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Self-adhesive-label manufacturer Avery Dennison Corp. (Pasadena, CA) announced Q3 diluted earnings per share of $0.63, compared with $0.73 per share for Q3 2000. Net income was $61.7 million, versus $73 million in Q3 2000. Reported sales declined 3.5 percent to $966.7 million, from $1.001 billion a year ago.

In Q3 2001, sales for the company’s pressure-sensitive adhesives and materials sector grew to $549.2 million, a five percent increase from Q3 2000. General economic weakness in the North American office products market and converting business affected Avery Dennison’s Consumer and Converted Products sector, which reported a 4.2 percent decrease in sales, compared to Q3 2000.

The company has implemented cost-reduction efforts, which it expects will provide approximately $30 million in annualized savings, and will cut expenses in several new programs to save an additional $15 million. Avery Dennison had originally planned to eliminate 350 positions worldwide in 2001, but as a result of economic conditions, further cut permanent headcount by more than 550 positions at the end of Q3.