UPDATE 2-Avery Dennison Q2 profit tops mkt; halves dividend

jueves 30 de julio de 2009 21:14 CEST

* Q2 EPS $0.56 ex-items vs $0.36 est, rev down 20 pct

* Cuts dividend to $0.20 from $0.41

* Says expanded cost-cutting actions

* Shares fall 10 pct

(Adds analyst comments)

July 30 (Reuters) - Label and office supplies maker Avery Dennison Corp (AVY.N: Cotización) posted better-than-expected quarterly profit, but slashed its quarterly dividend in half to repay debt, sending its shares down 10 percent.

"The upside relative to the Street seems to be primarily a function of aggressive cost-cutting, with core sales down 14 percent," Robert W Baird analyst Ghansham Panjabi said in a note, adding that the Street "mis-calibrated" the earnings forecast.

Avery Dennison, which began a restructuring program in the fourth quarter and cut 10 percent of its global workforce, said it has expanded actions to cut fixed costs.

The company is now targeting in excess of $160 million in annualized savings by mid-2010.   Continuación...