Avery Dennison Corp. has a market cap of $4.07 billion; its shares were traded at around $37.01 with a P/E ratio of 14.2 and P/S ratio of 0.7. The dividend yield of Avery Dennison Corp. stocks is 2.1%.AVY is in the portfolios of Richard Snow of Snow Capital Management, L.P., Richard Snow of Snow Capital Management, L.P., Brian Rogers of T Rowe Price Equity Income Fund, Bruce Kovner of Caxton Associates, PRIMECAP Management, Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc.
Highlight of Business Operations:Net income increased approximately $2 million and $999 million in the third quarter and first nine months of 2010, respectively, compared to the same periods in 2009. Net loss in 2009 included an impairment of goodwill and indefinite-lived intangible assets totaling $832 million.
In the fourth quarter of 2008, we initiated a restructuring program that generated approximately $180 million in annualized savings by the end of the second quarter of 2010. We realized actual savings, net of transition costs, of approximately $75 million in 2009 and an incremental $62 million in the first nine months of 2010.
We recorded approximately $150 million in pretax charges (of which $105 million represents cash charges) related to this restructuring program, consisting of severance and related costs, asset impairment charges, and lease cancellation costs. Severance and related costs were related to approximately 4,350 positions. We do not expect to incur any further charges related to this program.
In the third quarter of 2010, we recorded approximately $7 million in pretax charges related to additional restructuring actions, consisting of severance and related costs for the reduction of approximately 585 positions, asset impairment charges, and lease cancellation costs. We anticipate approximately $6 million in annualized savings from these additional restructuring actions to be realized by the end of 2012.
We expect contributions to all pension plans (domestic and international) of at least $50 million in 2010. We expect incremental pension expense of approximately $15 million for all pension plans and an additional loss of approximately $2 million due to the freezing of two of our domestic pension plans effective December 31, 2010.
We anticipate restructuring charges and other items included in Other expense, net to be approximately $15 million to $20 million. We expect to realize an incremental $70 million of restructuring savings, net of transition costs, from the Q4 2008 Q2 2010 Program.
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