Slow Q1 for Avery

26 April 2005 – Pasadena (CA): Avery Dennison has reported Q1 sales of $1.3 billion up from $1.2 billion a year ago, in line with its previously revised expectations on the back of weakened demand.

Net income was $57.7 million, or EPS of $0.57, compared with $52.6 million, or EPS of $0.52, in 2004.

Phil Neal, chairman and CEO said: "Although we started the year with strong sales growth, demand slowed significantly as the quarter progressed. Sales weakened across most businesses and regions late in the quarter.

"We are clearly disappointed in the results for the quarter," he added. "While we are continuing to fund growth programmes with significant potential, we have implemented a number of immediate actions throughout the company to sharply reduce expenses."