US based Avery Dennison Corporation has announced preliminary, un-audited second quarter 2012 results. While the company’s sales increased modestly due to increased volumes its operating margin improved 50 basis points to 2.9% as the impact of higher volume and productivity initiatives offset higher employee-related expenses and restructuring costs. The adjusted operating margin improved 80 basis points.
In the first half of 2012, the company began a $100 million restructuring program, expected to be completed by mid-2013 that will reduce costs across all segments of the business. The company currently anticipates more than $100 million in annual savings from this program. Implementing these actions is estimated to cost approximately $55 million in 2012, and approximately $25 million in 2013. Excluding an estimated $0.35 per share for restructuring costs and other items, the company expects adjusted (non-GAAP) earnings of $1.90 to $2.05 per share from continuing operations.