Avery Dennison Posts 1Q Loss

PASADENA, Calif. (AP) — Adhesive label maker Avery Dennison Corp. on Tuesday reported a first-quarter loss, due to hefty restructuring and asset impairment charges and lower revenue.

It lost $46.2 million, or 46 cents per share, in the quarter ended April 4 in contrast to a profit of $68.4 million, or 69 cents per share, a year ago.

Excluding restructuring costs, asset impairment and lease cancellation charges and loss from debt extinguishment, Avery Dennison earned 11 cents per share.

Revenue fell 13 percent $1.43 billion from $1.65 billion last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of 22 cents per share on revenue of $1.42 billion. The estimates typically exclude one-time items.

"Business conditions remain weak, particularly in the retail sector," said Dean A. Scarborough, president and chief executive, in a statement. "However, the decline moderated after a very weak January."

The company said it is offsetting the weak environment by cutting costs and improving productivity. It began implementing a restructuring program in the fourth quarter, including cutting jobs and other costs, in an effort to save $150 million annually over the next two years.

Shares fell $1.74, or 5.9 percent, to $27.70 in morning trading. The stock has traded between $17.02 and $51.79 during the past year.