Avery Dennison’s Profit Rises 8 Percent

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Shares of Avery Dennison Corp. gained more than 8 percent on Wednesday after the office products maker reported a better-than-expected third quarter and raised profit guidance.

The Pasadena company reported net income of $58.3 million (57 cents a share), compared with net income of $49.8 million (47 cents) in the same period a year ago. Revenue fell 1 percent to less than $1.49 billion.

Analysts surveyed by Thomson Reuters on average expected profit of 45 cents a share on revenue of $1.48 billion.

Avery Dennison is in the middle of a restructuring program that it expects to finish by the middle of next year. The company earlier this month canceled a deal to sell its office and consumer products business to 3M Co. for $550 million, but wants to find another buyer. The sale was canceled amid government restrictions due to antitrust issues.

“Our restructuring initiative is well under way, and we are on track to achieve more than $100 million in annualized savings by mid-2013,” Chief Executive Dean Scarborough said in a statement.

Avery Dennison raised the bottom number of its full-year adjusted earnings outlook. The company now expects adjusted earnings from continuing operations of $2 to $2.05 a share, compared with prior guidance of $1.90 to $2.05 a share. The Wall Street consensus is for earnings of $1.94 a share.

Shares closed up $2.50, or nearly 8.5 percent, to $32.25 on the New York Stock Exchange.

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