Explaining Southern California's economy

Avery Dennison racks up big quarterly profit, is selling office products unit for $500 million

Innovative labelmaker Avery Dennison of Pasadena is getting out of the office products business.

Hi-Liters and Marks-A-Lot makers will no longer be products that Pasadena-based Avery Dennison sells. The company reported earnings for the fourth quarter of 2012 — but also announced that it’s selling its office products division to Canada’s CCL, for $500 million in cash.

The deal has to be approved be regulators, but should be completed by mid-2013.

In that context, earnings were just frosting on the cake. Avery Dennison exceeded its 2011 profits for the same quarter by a huge margin: $49 million versus $22 million.

That’s impressive, given that revenue only rose by about 5 percent, to $1.53 billion for the quarter. 

Wall Street was pleased, pushing the stock price to highs not seen since 2011.

Follow Matthew DeBord and the DeBord Report on Twitter. And ask Matt questions at Quora.

blog comments powered by Disqus