Avery Dennison to Cut 10% of Jobs (3,600) After Sales Decline

[Purveyor]

Source: Bloomberg

By Allison Abell Schwartz

Jan. 27 (Bloomberg) -- Avery Dennison Corp., the world’s largest label maker, said it will eliminate about 10 percent of its workforce, or about 3,600 jobs, after reporting its first sales decline in 12 quarters.

The cuts will cost about $120 million, most of which will be booked in 2009, the Pasadena, California-based company said today in a statement. The sticker-maker said it will save $150 million annually over the next two years once the cuts are implemented.

People are slowing spending on non-essential products, including mailing labels, custom greeting cards and notebooks, as the U.S. recession deepens and consumer confidence reaches record lows. Sprint Nextel Corp., Corning Inc. and Home Depot Inc. announced job reductions this week and more companies could follow.

Avery Dennison fell $2.12, or 7.6 percent, to $25.72 at 4:11 p.m. in New York Stock Exchange composite trading, the biggest one-day decline since Dec. 1.

Fourth-quarter net income dropped 46 percent from a year earlier to $42.6 million, or 43 cents a share, the company said today. Revenue fell to $1.51 billion from $1.71 billion.

Read more: http://www.bloomberg.com/apps/news?pid=20601205&sid=aitMPwhHR2Sc&refer=consumer

[depakid]

1. I thought at first that was Dennison chili

Figure the demand on that isn't going down....

[JDPriestly]

2. What do you think will help? Tax cuts for Avery Dennison and the

businesses who buy supplies from them or having the government hire people to do infrastructure so that the people the government hires will have money to buy products and services from the businesses who buy supplies from Avery Dennison? Which choice will have the best short term effect? Which choice will have the best long term effect?

I favor hiring people to do infrastructure work because I think the effect will be greater in both the long and short terms. I don't think tax cuts without direct job creation will create more demand. The tax cuts can only be used if the profits that are made from increased demand exist. They are not that helpful to a company like Avery Dennison if it can't sell its products and make a profit.

Also, we get a double benefit from the infrastructure work. Our environment, and the environment in which businesses operate is improved an becomes safer, and that makes people feel good. When people feel good about their environment, in my experience, they are more productive. If you, for instance, have to worry about being robbed every time you go out of your house, you don't buy stuff. So, hiring more police officers -- provided it improves public safety -- stimulates business. We are a web of needs and talents. We are all part of that web. When ordinary people don't have jobs, businesses do not do well.

[HopeHoops]

3. Instead of pink slips, they just print out the news on mailing labels - stick on forehead.

[Sen. Walter Sobchak]

4. 36,000 people work for Avery Dennison?

Doing what?

[stillcool]

5. It's a global corporation...

seems like they make a lot. Although I'm sure their employees in other countries will not be affected.


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