Business Context and Reporting Period
Company: Avery Dennison Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: July 18, 2011
Subject: Update regarding estimated unaudited financial results for the second quarter of 2011 and revised adjusted (non-GAAP) earnings per share guidance for the 2011 fiscal year.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document serves as a notification that a news release (Exhibit 99.1) containing these preliminary and unaudited figures has been issued. Investors must refer to the attached news release for specific data points.
Material Changes
The Company announced an update to its estimated unaudited financial results for the second quarter of 2011. Additionally, the Company revised its adjusted (non-GAAP) earnings per share guidance for the full 2011 fiscal year. Specific details regarding the magnitude or direction of these changes are not contained within the body of this Form 8-K.
Guidance, Outlook, and Risks
Guidance Update: The Company has issued revised adjusted (non-GAAP) earnings per share guidance for fiscal year 2011.
Significant Risk Factors: Management identified the following as the most significant near-term risks affecting financial performance:
- The ability to offset higher costs through productivity measures or price increases without losing volume.
- Competitor actions regarding pricing, market expansion, and product offerings.
- The impact of economic conditions on underlying product demand.
- Changes in global tax laws and regulations.
Other Risks: The filing lists standard forward-looking statement risks including raw material costs, foreign currency fluctuations, integration of acquisitions, credit market volatility, and geopolitical events.
Investor Verification Checklist
- Review Exhibit 99.1 (News Release) for specific Q2 2011 revenue and earnings figures.
- Verify the specific numerical range of the revised 2011 full-year adjusted EPS guidance.
- Assess the impact of raw material cost fluctuations on the Company's margin outlook.
- Confirm the Company's strategy for passing cost increases to customers versus absorbing them.