PASADENA, Calif. — Avery Dennison Corp., which makes labels and packaging materials, said Wednesday that its net income slipped 2 percent on a sales slowdown, but adjusted results beat expectations.
The company said a slowdown in volume that started a year ago has continued and the company continues to battle high prices for raw materials like pulp and fuel. But higher selling prices and cost cuts helped operating profit to improve.
Net income fell to $43.9 million, or 41 cents per share, from $44.8 million, or 42 cents per share last year. Excluding one-time items related to selling its office and consumer products business, earnings totaled 49 cents per share. Analysts expected net income of 45 cents per share.
Revenue fell 3 percent to $1.48 billion from $1.53 billion last year.
Sales of its label and packaging materials were flat as lower volume was offset by higher prices. Sales of its retail branding, printer systems and fasteners fell 4 percent, hurt by lower unit demand from retailers and brands in the U.S. and Europe.
Avery Dennison reiterated 2012 adjusted earnings guidance of $1.80 to $2.15 per share. Analysts predict earnings of $1.98 per share.
Its shares rose 27 cents to $31.55 in midday trading. Its shares have traded in a 52-week range of $23.52 to $43.52.