Business Context and Reporting Period
Company: Avery Dennison Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: April 27, 2016
Reporting Period: First Quarter 2016 (Preliminary, Unaudited)
This filing serves as a notification that the Company has issued a press release and supplemental presentation materials regarding its preliminary financial results for the first quarter of 2016 and updated guidance for the full 2016 fiscal year. These documents are attached as Exhibits 99.1 and 99.2 and are furnished, not filed, with the SEC.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The text of this Form 8-K does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the attached press release (Exhibit 99.1) and supplemental presentation materials (Exhibit 99.2), which are referenced but not included in the body of this filing.
Material Changes
The filing indicates that the Company has provided updated guidance for the 2016 fiscal year. However, the specific details of material changes versus the prior comparable period are not disclosed in the text of this report and must be reviewed in the attached exhibits.
Guidance, Outlook, and Risks
Guidance and Outlook: The Company has issued updated guidance for the 2016 fiscal year, details of which are in the attached exhibits. Management scheduled a webcast and teleconference on April 27, 2016, to discuss these results.
Risks and Contingencies: The filing includes a "Safe Harbor" statement identifying significant risk factors that could cause actual results to differ materially from forward-looking statements. Key risks include:
- Fluctuations in demand and worldwide/local economic conditions.
- Currency exchange rate fluctuations and risks associated with foreign operations.
- Cost and availability of raw materials.
- Ability to achieve productivity improvements and cost reductions.
- Competitive pricing and product offerings.
- Integration of acquisitions and completion of dispositions.
- Information technology disruptions, including cyber-attacks.
- Changes in tax laws and outcomes of tax audits.
The Company identifies the most significant near-term risks as: (1) economic conditions and foreign currency fluctuations; (2) competitor actions; and (3) the ability to offset higher costs through productivity or price increases without losing volume.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific Q1 2016 revenue, earnings, and cash flow figures.
- Review Exhibit 99.2 (Supplemental Materials) for detailed financial analysis and updated 2016 full-year guidance.
- Verify the impact of foreign currency fluctuations on reported results as highlighted in the risk factors.
- Confirm the Company's strategy for offsetting raw material costs through productivity or pricing.
- Check the Company's investor relations website (www.investors.averydennison.com) for the webcast recording and additional data.