Avery Dennison reports second quarter sales increase

Its net income for the quarter was $92.4m, an increase of 7% on the same period in 2007.

The company saw an 11% rise in sales in its pressure-sensitive materials division to $979.9m.

It said that revenue growth in its pressure-sensitive materials business was driven by strong sales in emerging markets, with revenue in the US and Europe reflecting the tough economic conditions.

Avery Dennison reported that revenue in its RFID business, which makes up less than 10% of its revenue, has quadrupled in the quarter inline with expectations.

Dean A. Scarborough, president and chief executive, said: “A strong product line, distinct competitive advantages, and the strength of our global footprint continue to help offset the current environment of spiking raw material costs and economic slowdown in the US and Europe.”

The company’s net sales for the first six months of 2008 were $3.5bn, compared with $2.9bn in 2007.

Its gross profit was $914.3m for the period, compared with $774.7m in 2007.

Avery Dennison has reduced its expectations for 2008 because of the “significant increase in inflation and economic weakness”.

It added that it has accelerated productivity efforts and is raising prices.

Popular Articles