10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Avery Dennison Corp. Reports Operating Results (10-Q)

November 06, 2012 | About:
10qk

10qk

18 followers
Avery Dennison Corp. (AVY) filed Quarterly Report for the period ended 2012-09-29.

Avery Dennison Corp has a market cap of $3.27 billion; its shares were traded at around $34.13 with a P/E ratio of 16.7 and P/S ratio of 0.5. The dividend yield of Avery Dennison Corp stocks is 3.4%. Avery Dennison Corp had an annual average earning growth of 2% over the past 10 years.

Highlight of Business Operations:

Net sales of the Companys continuing operations to its discontinued operations were $21.4 million and $62.7 million for the three and nine months ended September 29, 2012, respectively, and $19.5 million and $64 million for the three and nine months ended October 1, 2011, respectively. These sales have been included in Net sales in the unaudited Consolidated Statements of Income.

The effective tax rate for continuing operations was 34.5% and 32.3% for the three and nine months ended September 29, 2012, respectively, and 23.2% and 36% for the three and nine months ended October 1, 2011, respectively. The effective tax rate for the first nine months of 2012 benefited from favorable tax rates associated with certain earnings from our operations in lower-tax jurisdictions throughout the world. For the three and nine months ended September 29, 2012, the effective tax rate included a discrete tax expense of $2.2 million for adjustments to domestic income taxes and $1.7 million for increases in certain tax reserves. For the three and nine months ended October 1, 2011, the effective tax rate included discrete tax benefits of $6.4 million and $4.2 million, respectively, for releases of certain tax reserves due to lapses of applicable statutory periods.

We have classified the operating results of this business, together with certain costs associated with the divestiture transaction, as discontinued operations in the unaudited Consolidated Statements of Income for the three and nine months ended September 29, 2012 and October 1, 2011. Assets and liabilities of this business are classified as held for sale in the unaudited Condensed Consolidated Balance Sheets at September 29, 2012 and December 31, 2011. The discontinued operations, which comprised substantially all of our previously reported OCP segment, had sales of approximately $213 million and $549 million for the three and nine months ended September 29, 2012, respectively, and approximately $219 million and $577 million for the three and nine months ended October 1, 2011, respectively.

Sales in the third quarter of 2012 declined approximately 1% compared to the same period last year, as higher sales on an organic basis were more than offset by the unfavorable impact of foreign currency translation. On an organic basis, sales grew 6%, driven primarily by increased demand in the Pressure-sensitive Materials and Retail Branding and Information Solutions segments.

The effective tax rate for continuing operations was 32.3% for the nine months ended September 29, 2012 compared to 36% for the nine months ended October 1, 2011. The effective tax rate for the first nine months of 2012 benefited from favorable tax rates associated with certain earnings from our operations in lower-tax jurisdictions throughout the world. Refer to Note 11, Taxes Based on Income, to the unaudited Condensed Consolidated Financial Statements for further information.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK