Published on Wednesday, July 23, 2008
By Ben Baeder
PASADENA - The country's largest producer of adhesive-label paper posted small second-quarter profits, but analysts on Wednesday seemed to cool on the company's earning prospects.
Pasadena-based Avery Dennison Corp. posted a $96.4 million profit from March 1 to June 30, which beat last year's earnings during the same time by $6.2 million.
The profit increase was driven by Avery's purchase of Paxar Corp., which makes radio transmitters that can be attached to clothes and give off identifying information.
In addition, the company paid $4 million less in taxes, according to earnings statements.
The company, which is strongly tied to retail-clothes sales, could face tough times due to expected decreases in clothes shopping forecasted for the coming year.
And inflation in material costs could cut into profits for the sticky paper, referred to as pressure-sensitive material, officials said
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