Avery Dennison Q3 Profit From Cont. Opns. Rises;updates FY Outlook - Quick Facts

(RTTNews) - Labeling and packaging materials company Avery Dennison Corp. (AVY) reported that its third-quarter income from continuing operations increased to $62.0 million from last year's $35.9 million, with income from continuing operations per share improving to $0.62 from $0.35 in the previous year.

Adjusted net income per share from continuing operations rose to $0.69 from $0.51 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.64 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net income decreased to $37.0 million from $58.3 million in the prior year. Net income per share was $0.37, down from $0.57 last year.

Net sales for the quarter increased to $1.505 billion from the prior year's $1.447 billion. Five analysts estimated revenues of $1.51 billion for the quarter.

On July 1, 2013, Avery Dennison completed the sale of its Office and Consumer Products or OCP, and Designed and Engineered Solutions or DES businesses to Canada-based CCL Industries Inc. (CCL_A.TO, CCL_B.TO) for $500 million. The company expects net proceeds from the sale of about $400 million, which it plans to use primarily to repurchase shares.

The company now expects 2013 earnings per share from continuing operations of $2.40 to $2.50, compared to prior estimate of $2.40 to $2.60.

Excluding an estimated $0.20 per share for restructuring costs and other items, net of gain on sale of assets, the company now expects adjusted earnings per share from continuing operations of $2.60 to $2.70 for 2013. Previously, the company expected adjusted earnings per share from continuing operations for fiscal 2013 to be in the range of $2.50 to $2.70, excluding an estimated $0.10 per share for restructuring costs and other items, net of gain on sale of assets. Analysts expect the company to report earnings of $2.60 per share for fiscal 2013.

The company continues to expect free cash flow from continuing operations in the range of $275 million to $315 million 2013.