27 de octubre de 2009 / 14:34 / en 8 años

UPDATE 2-Avery Dennison Q3 tops est; says end-markets still weak

* Q3 EPS $0.82 vs est $0.57

* Sees Q4 seasonal volumes sequentially lower

* Says end-markets still weak * Shares up nearly 6 pct (Adds Q4 outlook, updates share movement)

Oct 27 (Reuters) - Label and office supplies maker Avery Dennison Corp (AVY.N) posted better-than-expected quarterly profit as restructuring actions helped margins, but said its end-markets remained soft.

Higher raw material costs would pressure the fourth quarter and seasonal volume would be sequentially lower, the company said in a filing with the Securities and Exchange Commission.

Change in the company’s fiscal calendar would reduce fourth-quarter sales by $50 million sequentially, it added.

The company posted third-quarter profit of $62.5 million, or 59 cents a share, compared with $62.7 million, or 63 cents a share, a year earlier.

Excluding certain charges, earnings were 82 cents a share.

Revenue fell 10 percent to $1.55 billion.

Analysts on average were expecting earnings of 57 cents a share on revenue of $1.47 billion, according to Thomson Reuters I/B/E/S.

“While the rate of volume decline in the third quarter improved compared with the first half of the year, this was largely due to a slowdown in inventory reductions,” CEO Dean Scarborough said in a statement.

Adjusted operating margin in the third quarter was 7.3 percent, compared with 6.6 percent in the year-ago period.

Avery Dennison began a restructuring program in the fourth quarter of 2008 and has cut about 10 percent of its workforce and halved its dividend.

The company said it would incur about $130 million in total restructuring charges -- including $110 million to be taken in 2009.

Shares of the company were trading up 71 cents at $37.55 Tuesday morning on the New York Stock Exchange. They touched a high of $39.04 earlier in the session. (Reporting by Amulya Nagaraj and A.Ananthalakshmi in Bangalore; Editing by Aradhana Aravindan)

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