Business Context and Reporting Period
Company: Avery Dennison Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: July 26, 2011
Reporting Period: Second Quarter 2011 (Preliminary, Unaudited)
This filing serves to announce the Company's preliminary financial results for the second quarter of 2011 and provides updated guidance for the full 2011 fiscal year. Detailed financial data is contained in attached Exhibits 99.1 (News Release) and 99.2 (Presentation), which are furnished but not filed as part of this 8-K text.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and 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 referenced as being available in the attached news release and presentation materials.
Material Changes
The filing indicates the release of preliminary, unaudited results for the second quarter of 2011 and an update to the full-year 2011 guidance. Specific quantitative changes compared to the prior comparable period are not detailed in the body of this report.
Guidance, Outlook, and Risks
Management Commentary and Outlook
Management provided updated guidance for the 2011 fiscal year. A webcast and teleconference were held on July 26, 2011, to discuss these preliminary results and the updated outlook.
Risk Factors and Contingencies
The filing includes a special note regarding forward-looking statements, highlighting significant risks that could cause actual results to differ materially from expectations. The most significant near-term risk factors identified include:
- Economic conditions affecting underlying demand for products.
- The ability to offset higher costs through productivity measures or price increases without losing volume.
- Competitor actions regarding pricing, market expansion, and product offerings.
- Changes in tax laws, regulations, and audit outcomes globally.
Additional risks cited include fluctuations in raw material costs, foreign currency exchange rates, integration of acquisitions, and potential disruptions in IT systems.
Investor Verification Checklist
- Review Exhibit 99.1 (News Release) for specific Q2 2011 revenue, earnings per share, and margin figures.
- Examine Exhibit 99.2 (Presentation) for the detailed breakdown of the updated 2011 full-year guidance.
- Verify the impact of raw material cost fluctuations and foreign currency exchange rates on the preliminary results.
- Assess the Company's strategy for passing on cost increases to customers versus maintaining volume.