This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Avery Dennison's CEO Discusses Q1 2012 Results - Earnings Call Transcript

On the call today are Dean Scarborough, Chairman, President and CEO; and Mitch Butier, Senior Vice President and CFO. I'll now turn the call over to Dean.

Dean A. Scarborough

Thanks, Eric, and good day, everyone. First quarter earnings came in as we expected on somewhat lower than anticipated sales volume while free cash flow was somewhat better than we expected. Sales declined modestly, reflecting the slowdown in volume that started in the second quarter of last year and impacted all regions. Run rates were generally in line with recent trends. Asia, however, was weaker than we expected for the pressure-sensitive Materials segment, and I'll touch on that just a bit more in a few minutes.

Despite lower volumes, we increased the operating profit through productivity initiatives and higher prices. And I'm pleased to say we're delivering on the commitment to return more cash to shareholders. We repurchased 2.4 million shares during the quarter and paid a higher dividend.

Now let me comment briefly on the 2 segments before turning the call over to Mitch. Pressure-sensitive Materials continues to deliver solid results. Despite lower volume, operating profits were up. Results for North America and Europe were pretty much in line with our expectations, but sales in Asia came in weaker than planned for Label and Packaging Materials. We knew the comparisons to prior year will be tough for this region, but LPM sales in Asia ramped up more slowly than we anticipated following the Chinese New Year. The run rate has picked up for this business, so we expect to see a return to double-digit growth for LPM Asia over the balance of the year. To that end, we completed the expansion of LPM's plant in Pune, India where we continue to see exciting growth opportunities. Globally, this business has solid, long-term growth drivers, stable to improving operating margins and generates a lot of cash. You'll hear much more about our strategies and outlook for this business from LPM's President Don Nolan during the May Investor Meeting.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs