January 27, 2009 / 2:38 PM / 10 years ago

UPDATE 1-Avery Dennison Q4 profit beats Street view

* Q4 adj EPS $0.65 beats estimate of $0.43

* Revenue down 12 percent

* Says not providing 2009 earnings forecast

* Sees restructuring charges of $120 mln

Jan 27 (Reuters) - Office supplies maker Avery Dennison Corp (AVY.N) posted a quarterly profit that beat market estimates handily, but said it was reducing its global workforce by about 10 percent as part of its restructuring program to cut costs.

The Pasadena, California-based company said it was not providing 2009 earnings forecast at this time due to the “decreased visibility in the global economic environment.”

For the fourth quarter, net income was $42.6 million, or 43 cents a share, compared with $79.4 million, or 81 cents a share, in the year ago.

On an adjusted basis, the company earned 65 cents a share.

Analysts on average were expecting earnings of 43 cents a share, before special items, according to Reuters Estimates. Revenue was $1.51 billion, coming below analysts’ average expectation of $1.57 billion.

The company, which began the restructuring program in the fourth quarter, said it expects to incur related charges of about $120 million, majority of which would be incurred in 2009.

It sees annualized savings of $150 million over the next two years.

Avery Dennison, which makes specialty tapes, adhesive labels and peel-and-stick postage stamps, said raw material costs rose about 4 percent in 2008.

Shares of the company closed at $27.84 Monday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Himani Sarkar)

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