Avery Dennison's 2nd-qtr profit up 7 percent

Net income for the three months ended June 28 rose to $92.4 million, or 93 cents per share, compared with $86.2 million, or 87 cents per share, in the year-earlier period.

Excluding one-time items, the company had adjusted earnings per share of $1.03, up from $1.01 per share in the year-earlier quarter.

Analysts polled by Thomson Financial expected earnings per share of $1. Analyst estimates typically exclude one-time items.

Sales climbed 20 percent to $1.83 billion from $1.52 billion. Analysts expected sales of $1.8 billion.

Revenue in Avery Dennison's retail information systems business surged to $438.2 million from $219.4 million, largely on contributions from Paxar Corp., which Avery Dennison bought in the second quarter of last year for $1.34 billion.

Revenue in the Avery Dennison's office and consumer products segment fell 3 percent, and sales in the pressure-sensitive materials segment declined 11 percent to $80 million. The segment includes materials used to make labels for glass and plastic containers.

Avery Dennison also cut its outlook, and its shares fell $2.24, or 5 percent, to $43 in premarket activity. The stock has ranged from $40.05 to $68.29 over the past year.