Avery Dennison Announces First Quarter 2013 Results

  Avery Dennison Announces First Quarter 2013 Results

  *1Q13 Reported EPS (including discontinued operations) of $0.57

       *Adjusted EPS (non-GAAP, continuing operations) of $0.59

  *1Q13 Net sales grew approx. 4 percent to $1.50 billion

       *Net sales up approx. 4 percent on organic basis

  *Returned $89 million of cash to shareholders, with dividends of $27
    million and repurchase of 1.5 million shares for $62 million
  *Restructuring program on track to achieve more than $100 million in
    annualized savings by mid-2013
  *Obtained all regulatory clearances for sale of OCP and DES; anticipate
    closing mid-2013
  *FY13 Adjusted EPS (non-GAAP, continuing operations) expected to be up 22%
    to 40% (compared to 15% to 35% previously)

Business Wire

PASADENA, Calif. -- April 24, 2013

Avery Dennison Corporation (NYSE:AVY) today announced preliminary, unaudited
first quarter 2013 results. All non-GAAP financial measures referenced in this
document are reconciled to GAAP in the attached tables. Unless otherwise
indicated, the discussion of the company’s results is focused on its
continuing operations, and comparisons are to the same period in the prior
year. Results reflect classification of Office and Consumer Products (OCP) and
Designed and Engineered Solutions (DES) as discontinued operations.

“First-quarter results were in line with our expectations,” said Dean
Scarborough, Avery Dennison chairman, president and CEO. “Double-digit sales
growth in emerging markets at Pressure-sensitive Materials and continued sales
growth at Retail Branding and Information Solutions, combined with the
benefits of our restructuring program, put us on track for a 22 to 40 percent
increase in full-year adjusted earnings per share.

“We are also on track to deliver on our free cash flow target for the year,”
Scarborough said. “During the quarter, we returned nearly $90 million to
shareholders through dividends and the repurchase of approximately 1.5 million
shares.

“Finally, I’m pleased that we have received all regulatory clearances for the
sale of Office and Consumer Products and Designed and Engineered Solutions,
which we expect to complete mid-year,” Scarborough said.

For more details on the company’s results, see the summary table accompanying
this news release, as well as the supplemental presentation materials, “First
Quarter 2013 Financial Review and Analysis,” posted on the company’s website
at www.investors.averydennison.com, and furnished on Form 8-K with the SEC.

First Quarter 2013 Results by Segment

All references to sales reflect comparisons on an organic basis, which exclude
the estimated impact of currency translation, product line exits, acquisitions
and divestitures. Adjusted operating margin refers to earnings before interest
expense and taxes, excluding restructuring costs and other items, as a
percentage of sales.

Pressure-sensitive Materials (PSM)

  *PSM segment sales increased approximately 3 percent. Within the segment,
    Label and Packaging Materials sales increased low-single digits. Combined
    sales for Graphics, Reflective, and Performance Tapes increased slightly.
  *Operating margin improved 20 basis points to 9.6 percent as the benefit of
    productivity initiatives and higher volume more than offset the impact of
    changes in product mix and higher employee-related expenses. Adjusted
    operating margin improved 30 basis points.

Retail Branding and Information Solutions (RBIS)

  *Sales increased approximately 6 percent driven by increased demand from
    U.S. and European retailers and brands, including another quarter of
    strong growth in RFID.
  *Operating margin improved 210 basis points to 3.8 percent as the benefit
    of productivity initiatives and higher volume more than offset higher
    employee-related expenses. Adjusted operating margin improved 150 basis
    points.

Other

Share Repurchases

The company repurchased 1.5 million shares in the first quarter at an
aggregate cost of $62 million (approximately 1.5 percent of shares
outstanding).

Results of Discontinued Operations

Earnings from OCP and DES, and certain costs associated with their anticipated
divestiture, are reported as income or loss from discontinued operations (net
of tax) in the preliminary, unaudited consolidated statements of income. Net
loss per share from discontinued operations increased from $(0.01) to $(0.09).

Income Taxes

The first quarter effective tax rate was 18 percent, reflecting favorable tax
law changes that are discrete to the quarter. The adjusted tax rate for the
first quarter decreased from 34 to 33 percent, in line with expectations.

Cost Reduction Actions

In the first half of 2012, the company began a restructuring program to reduce
costs across all segments of the business. The company continues to anticipate
more than $100 million in annualized savings from this program by mid-2013. To
implement these actions, the company incurred restructuring costs, net of gain
on sale of assets, of approximately $7 million in the first quarter. The
company expects to incur restructuring costs, net of gain on sale of assets,
of $25 million in 2013.

Outlook

In its supplemental presentation materials, “First Quarter 2013 Financial
Review and Analysis,” the company provides a list of factors that it believes
will contribute to its 2013 financial results. Based on the factors listed,
other assumptions and the exclusion of DES, the company now expects 2013
earnings per share from continuing operations of $2.23 to $2.58. Excluding an
estimated $0.17 per share for restructuring costs and other items, net of gain
on sale of assets, the company expects adjusted (non-GAAP) earnings per share
from continuing operations of $2.40 to $2.75. The company expects free cash
flow from continuing operations in the range of $275 million to $315 million.

Note: Throughout this release and the supplemental presentation materials,
amounts on a per share basis reflect fully diluted shares outstanding.

About Avery Dennison

Avery Dennison (NYSE:AVY) helps make brands more inspiring and the world more
intelligent. For more than 75 years the company has been a global leader in
pressure-sensitive technology and materials and retail branding and
information solutions. A FORTUNE 500 company with sales of $6 billion from
continuing operations in 2012, Avery Dennison is based in Pasadena,
California, and has employees in over 50 countries. For more information,
visit www.averydennison.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of
                                     1995

Certain statements contained in this document are “forward-looking statements”
intended to qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements, and financial or other business targets, are subject to certain
risks and uncertainties. Actual results and trends may differ materially from
historical or anticipated results depending on a variety of factors, including
but not limited to risks and uncertainties relating to the following:
fluctuations in demand affecting sales to customers; the financial condition
and inventory strategies of customers; changes in customer order patterns;
worldwide and local economic conditions; fluctuations in cost and availability
of raw materials; our ability to generate sustained productivity improvement;
our ability to achieve and sustain targeted cost reductions; impact of
competitive products and pricing; loss of significant contracts or customers;
collection of receivables from customers; selling prices; business mix shift;
changes in tax laws and regulations, and uncertainties associated with
interpretations of such laws and regulations; outcome of tax audits; timely
development and market acceptance of new products, including sustainable or
sustainably-sourced products; investment in development activities and new
production facilities; fluctuations in foreign currency exchange rates and
other risks associated with foreign operations; integration of acquisitions
and completion of pending dispositions; amounts of future dividends and share
repurchases; customer and supplier concentrations; successful implementation
of new manufacturing technologies and installation of manufacturing equipment;
disruptions in information technology systems; successful installation of new
or upgraded information technology systems; volatility of financial markets;
impairment of capitalized assets, including goodwill and other intangibles;
credit risks; our ability to obtain adequate financing arrangements and
maintain access to capital; fluctuations in interest and tax rates;
fluctuations in pension, insurance and employee benefit costs; impact of legal
and regulatory proceedings, including with respect to environmental, health
and safety; changes in governmental laws and regulations; changes in political
conditions; impact of epidemiological events on the economy and our customers
and suppliers; acts of war, terrorism, and natural disasters; and other
factors.

We believe that the most significant risk factors that could affect our
financial performance in the near-term include: (1) the impact of economic
conditions on underlying demand for our products; (2) competitors’ actions,
including pricing, expansion in key markets, and product offerings; and (3)
the degree to which higher costs can be offset with productivity measures
and/or passed on to customers through selling price increases, without a
significant loss of volume.

For a more detailed discussion of these and other factors, see “Risk Factors”
and “Management’s Discussion and Analysis of Results of Operations and
Financial Condition” in the company’s 2012 Form 10-K, filed on February 27,
2013 with the Securities and Exchange Commission. The forward-looking
statements included in this document are made only as of the date of this
document, and the company undertakes no obligation to update these statements
to reflect subsequent events or circumstances.

For more information and to listen to a live broadcast or an audio replay of
the quarterly conference call with analysts, visit the Avery Dennison website
at www.investors.averydennison.com


First Quarter Financial Summary - Preliminary
(in millions, except per share amounts)
                        1Q           1Q           % Change vs. P/Y                                                        
                         2013          2012          Reported  Organic (a)
                                                                        
Net sales, by segment:
    Pressure-sensitive   $ 1,098.0     $ 1,065.0     3     %    3     %
    Materials
    Retail Branding
    and Information        382.7         360.1       6     %    6     %
    Solutions
    Other specialty
    converting            18.2       17.9       2     %    13    %
    businesses
Total net sales          $ 1,498.9     $ 1,443.0     4     %    4     %
                                                                                   
                         As Reported (GAAP)                                         Adjusted Non-GAAP (b)
                         1Q            1Q            % Change   % of Sales          1Q           1Q           % Change   % of Sales
                         2013          2012          Fav(Unf)   2013      2012      2013         2012         Fav(Unf)   2013      2012
Operating income
(loss) before interest   
and taxes, by segment:
    Pressure-sensitive   $ 104.9       $ 100.1                  9.6   %   9.4   %   $ 108.5      $ 102.3                 9.9   %   9.6   %
    Materials
    Retail Branding
    and Information        14.6          6.1                    3.8   %   1.7   %     17.6         11.1                  4.6   %   3.1   %
    Solutions
    Other specialty
    converting             (2.7    )     (3.2    )              -14.8 %   -17.9 %     (2.7   )     (3.2   )              -14.8 %   -17.9 %
    businesses
    Corporate expense     (23.5   )   (22.4   )                                   (22.6  )   (22.0  )

Total operating income
before interest and      $ 93.3        $ 80.6        16    %    6.2   %   5.6   %   $ 100.8      $ 88.2       14    %    6.7   %   6.1   %
taxes / operating
margin
                                                                                                                                   
Interest expense           12.2          18.3                                         12.2         18.3
                                                                                                                                   
Income from operations   $ 81.1        $ 62.3        30    %    5.4   %   4.3   %   $ 88.6       $ 69.9       27    %    5.9   %   4.8   %
before taxes
                                                                                                                                   
Provision for income     $ 14.3        $ 17.7                                       $ 28.9       $ 23.8
taxes
                                                                                                                                   
Net income from          $ 66.8        $ 44.6        50    %    4.5   %   3.1   %   $ 59.7       $ 46.1       30    %    4.0   %   3.2   %
continuing operations
                                                                                                                                   
Income (loss) from
discontinued               ($9.0   )     ($0.7   )   n/m        -0.6  %   0.0   %     ($2.3  )   $ 5.5        n/m        -0.2  %   0.4   %
operations, net of tax
                                                                                                                                   
Net income               $ 57.8        $ 43.9        32    %    3.9   %   3.0   %   $ 57.4       $ 51.6       11    %    3.8   %   3.6   %
                                                                                                                                   
Net income (loss) per
common share, assuming
dilution:
                                                                                                                                   
Continuing operations    $ 0.66        $ 0.42        57    %                        $ 0.59       $ 0.43       37    %
                                                                                                                                   
Discontinued               ($0.09  )     ($0.01  )   n/m
operations
                                                                                                                                   
Total Company            $ 0.57        $ 0.41        39    %
                                                                                                                                   
                                                                                     2013       2012   
Estimated Free Cash
Flow from Continuing                                                                  ($63.8 )     n/a
Operations (c)
Free Cash Flow
(including                                                                            ($94.5 )     ($22.6 )
discontinued
operations) (c)



(a) Percentage change in sales excludes the estimated impact of foreign currency translation, product line exits, acquisitions and
    divestitures.
(b) Excludes restructuring costs and other items (see accompanying schedules A-2 to A-4 for reconciliation to GAAP financial measures).
    Free cash flow refers to cash flow from operations, less net payments for property, plant, and equipment, software and other deferred
(c) charges, plus (minus) net proceeds from sales (purchases) of investments, plus discretionary contributions to pension plan utilizing
    proceeds from divestitures. Free cash flow excludes uses of cash that do not directly or immediately support the underlying business
    (such as discretionary debt reductions, dividends, share repurchases, and certain effects of acquisitions and divestitures).



A-1
AVERY DENNISON
PRELIMINARY CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)

                               (UNAUDITED)
                                                      
                                Three Months Ended
                                                           
                                Mar. 30, 2013              Mar. 31, 2012
                                                      
                                                           
Net sales                       $    1,498.9               $    1,443.0
                                                           
Cost of products sold              1,097.2                 1,065.9    
                                                           
Gross profit                         401.7                      377.1
                                                           
Marketing, general &                 300.9                      288.9
administrative expense
                                                           
Interest expense                     12.2                       18.3
                                                           
Other expense, net ^(1)            7.5                     7.6        
                                                           
Income from continuing               81.1                       62.3
operations before taxes
                                                           
Provision for income taxes         14.3                    17.7       
                                                           
Income from continuing               66.8                       44.6
operations
                                                           
Loss from discontinued             (9.0        )            (0.7       )
operations, net of tax
                                                           
Net income                     $    57.8                $    43.9       
                                                           
Per share amounts:
                                                           
Net income (loss) per
common share, assuming
dilution
                                                           
        Continuing              $    0.66                  $    0.42
        operations
                                                           
       Discontinued               (0.09       )            (0.01      )
        operations
                                                           
Net income per common          $    0.57                $    0.41       
share, assuming dilution
                                                           
Average common shares
outstanding, assuming              101.5                   106.2      
dilution

        "Other expense, net" for the first quarter of 2013 includes severance
^(1)    and related costs of $6.8, asset impairment charges of $1.3, and
        certain transaction costs of $.7, partially offset by gain on sale of
        assets of $1.3.

        "Other expense, net" for the first quarter of 2012 includes severance
        and related costs of $5.7, asset impairment and lease cancellation
        charges of $1.5, and certain transaction costs of $.4.



A-2

Reconciliation of Non-GAAP Financial Measures in Accordance with SEC
Regulations G and S-K

Avery Dennison reports financial results in conformity with accounting
principles generally accepted in the United States of America, or GAAP, and
herein provides some non-GAAP financial measures. These non-GAAP financial
measures are not in accordance with, nor are they a substitute for or superior
to, the comparable GAAP financial measures. These non-GAAP financial measures
are intended to supplement the company’s presentation of its financial results
that are prepared in accordance with GAAP. Based upon feedback from investors
and financial analysts, the company believes that supplemental non-GAAP
financial measures provide information that is useful to the assessment of the
company’s performance and operating trends, as well as liquidity.

The company’s non-GAAP financial measures exclude the impact of certain
events, activities or strategic decisions. The accounting effects of these
events, activities or decisions, which are included in the GAAP financial
measures, may make it difficult to assess the underlying performance of the
company in a single period. By excluding certain accounting effects, both
positive and negative, of certain items (e.g., restructuring costs, asset
impairments, legal settlements, certain effects of strategic transactions and
related costs, loss from debt extinguishments, loss from curtailment and
settlement of pension obligations, gains or losses on sale of certain assets
and other items), the company believes that it is providing meaningful
supplemental information to facilitate an understanding of the company’s core
operating results and liquidity measures. These non-GAAP financial measures
are used internally to evaluate trends in the company’s underlying business,
as well as to facilitate comparison to the results of competitors for a single
period. While some of the items excluded from GAAP financial measures may
recur, they tend to be disparate in amount, frequency, and timing.

The company uses the following non-GAAP financial measures in the accompanying
news release and presentation:

Organic sales change refers to the increase or decrease in sales excluding the
estimated impact of currency translation, product line exits, acquisitions and
divestitures;

Adjusted operating margin refers to earnings before interest expense and
taxes, excluding restructuring costs and other items, as a percentage of
sales;

Adjusted tax rate refers to the anticipated full year GAAP tax rate adjusted
for certain events;

Adjusted net income refers to reported net income adjusted for the
tax-effected restructuring costs and other items;

Adjusted EPS refers to as reported net income per common share, assuming
dilution, adjusted for the tax-effected restructuring costs and other items;
and

Free cash flow refers to cash flow from operations, less net payments for
property, plant, and equipment, software and other deferred charges, plus
(minus) net proceeds from sales (purchases) of investments, plus discretionary
contributions to pension plan utilizing proceeds from divestitures. Free cash
flow excludes uses of cash that do not directly or immediately support the
underlying business (such as discretionary debt reductions, dividends, share
repurchases, and certain effects of acquisitions and divestitures).

The reconciliation set forth below and in the accompanying presentation is
provided in accordance with Regulations G and S-K and reconciles the non-GAAP
financial measures with the most directly comparable GAAP financial measures.


A-3
AVERY DENNISON
PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except % and per share amounts)

                                                (UNAUDITED)
                                                               
                                                 Three Months Ended
                                                                 
                                               Mar. 30, 2013  Mar. 31, 2012
                                                                 
Reconciliation of Operating Margins:
                                                                 
Net sales                                        $  1,498.9    $  1,443.0  
                                                                 
Income from continuing operations before taxes  $  81.1       $  62.3     
                                                                 
Income from continuing operations before taxes    5.4      %    4.3      %
as a percentage of sales
                                                                 
Adjustment:
Interest expense                                 $  12.2       $  18.3     
                                                                 
Operating income from continuing operations     $  93.3       $  80.6     
before interest expense and taxes
                                                                 
Operating Margins                                 6.2      %    5.6      %
                                                                 
                                                                 
Income from continuing operations before taxes   $  81.1         $  62.3
                                                                 
Adjustments:
                                                                 
Restructuring costs:
                                                                 
Severance and related costs                         6.8             5.7
                                                                 
Asset impairment and lease cancellation             1.3             1.5
charges
                                                                 
Other items ^(1)                                    (0.6     )      0.4
                                                                 
Interest expense                                   12.2         18.3     
                                                                 
Adjusted operating income from continuing
operations before interest expense and taxes    $  100.8      $  88.2     
(non-GAAP)
                                                                 
Adjusted Operating Margins (non-GAAP)             6.7      %    6.1      %
                                                                 
                                                                 
Reconciliation of GAAP to Non-GAAP Net Income
from Continuing Operations:
                                                                 
As reported net income from continuing           $  66.8         $  44.6
operations
                                                                 
Non-GAAP adjustments, net of tax:
                                                                 
Restructuring costs and other items ^(2)          (7.1     )    1.5      
                                                                 
Adjusted Non-GAAP Net Income from Continuing    $  59.7       $  46.1     
Operations



A-3
(continued)
AVERY DENNISON
PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except % and per share amounts)


                                        (UNAUDITED)
                                                             
                                         Three Months Ended
                                                                
                                      Mar. 30, 2013         Mar. 31, 2012
                                                                
Reconciliation of GAAP to Non-GAAP
Net Income per Common Share from
Continuing Operations:
                                                                
As reported net income per common
share from continuing operations,        $     0.66             $   0.42
assuming dilution
                                                                
       Non-GAAP adjustments per
       common share, net of tax:
                                                                
      Restructuring costs and               (0.07     )        0.01    
       other items ^(2)
                                                                
Adjusted Non-GAAP Net Income per
Common Share from Continuing            $     0.59           $   0.43    
Operations, assuming dilution
                                                                
                                                                
Average common shares outstanding,           101.5             106.2   
assuming dilution
                                                                
^(1)   Includes certain transaction costs and gain on sale of assets.
       Reflects the impact of the adjusted tax rate applied to results from
^(2)   continuing operations, partially offset by restructuring costs and
       other items, tax-effected at the adjusted tax rate.
       
                                                                
                                         (UNAUDITED)
                                                                
                                         Three Months Ended
                                                                
                                      Mar. 30, 2013         Mar. 31, 2012
                                                                
Reconciliation of GAAP to Non-GAAP
Free Cash Flow:
                                                                
Net cash (used in) provided by           $     (65.7     )      $   10.7
operating activities
                                                                
Purchases of property, plant and               (21.1     )          (24.0   )
equipment, net
                                                                
Purchases of software and other                (7.8      )          (12.0   )
deferred charges
                                                                
Sales of investments, net                    0.1               2.7     
                                                                
Free Cash Flow                          $     (94.5     )     $   (22.6   )
                                                                
                                                                
                                                                
Estimated free cash flow from            $     (63.8     )
continuing operations
                                                                
Estimated free cash flow from                (30.7     )
discontinued operations
                                                                
Free Cash Flow                          $     (94.5     )



A-4
AVERY DENNISON
PRELIMINARY SUPPLEMENTARY INFORMATION
(In millions)
(UNAUDITED)

                    First Quarter Ended
                                                                            
                     NET SALES               OPERATING INCOME          OPERATING MARGINS
                      2013      2012       2013  ))   2012  ))   2013     2012  
                                               ((1          ((2
                                                                                  
Pressure-sensitive   $ 1,098.0   $ 1,065.0   $ 104.9      $ 100.1      9.6   %    9.4   %
Materials
Retail Branding
and Information        382.7       360.1       14.6         6.1        3.8   %    1.7   %
Solutions
Other specialty
converting             18.2        17.9        (2.7  )      (3.2  )    (14.8 %)   (17.9 %)
businesses
Corporate Expense     N/A       N/A        (23.5 )    (22.4 )    N/A      N/A   
                                                                                  
TOTAL FROM
CONTINUING           $ 1,498.9  $ 1,443.0   $ 93.3     $ 80.6      6.2   %   5.6   %
OPERATIONS

(1) Operating income for the first quarter of 2013 includes severance and related costs of
$6.8, asset impairment charges of $1.3, and certain transaction costs of $.7, partially
offset by gain on sale of assets of $1.3. Of the total $7.5, the Pressure-sensitive
Materials segment recorded $3.6, the Retail Branding and Information Solutions segment
recorded $3, and Corporate recorded $.9.

(2) Operating income for the first quarter of 2012 includes severance and related costs of
$5.7, asset impairment and lease cancellation charges of $1.5, and certain transaction
costs of $.4. Of the total $7.6, the Pressure-sensitive Materials segment recorded $2.2,
the Retail Branding and Information Solutions segment recorded $5, and Corporate recorded
$.4.



RECONCILIATION OF GAAP TO NON-GAAP SUPPLEMENTARY INFORMATION

                                      First Quarter Ended
                                       OPERATING INCOME     OPERATING MARGINS
                                                                    
                                        2013     2012    2013     2012 
Pressure-sensitive Materials
Operating income and margins, as       $ 104.9     $ 100.1   9.6   %    9.4  %
reported
Adjustments:
Restructuring costs:
Severance and related costs              2.6         1.2     0.2   %    0.1  %
Asset impairment and lease              1.0       1.0     0.1   %    0.1  %
cancellation charges
Adjusted operating income and          $ 108.5   $ 102.3   9.9   %   9.6  %
margins (non-GAAP)
                                                                        
Retail Branding and Information
Solutions
Operating income and margins, as       $ 14.6      $ 6.1     3.8   %    1.7  %
reported
Adjustments:
Restructuring costs:
Severance and related costs              4.0         4.5     1.0   %    1.3  %
Asset impairment charges                 0.3         0.5     0.1   %    0.1  %
Gain on sale of assets                  (1.3  )   ---     (0.3  %)  ---  
Adjusted operating income and          $ 17.6    $ 11.1    4.6   %   3.1  %
margins (non-GAAP)



A-5
AVERY DENNISON
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
                                                              
                                                                 
                                                 (UNAUDITED)
                                                                 
ASSETS                                          Mar. 30, 2013  Mar. 31, 2012
                                                                 
Current assets:
Cash and cash equivalents                        $  207.7        $  190.7
Trade accounts receivable, net                      988.7           961.9
Inventories, net                                    516.3           518.8
Assets held for sale                                551.5           443.6
Other current assets                              249.6        220.7    
                                                                 
Total current assets                                2,513.8         2,335.7
                                                                 
Property, plant and equipment, net                  939.5           1,059.6
Goodwill                                            756.9           768.5
Other intangibles resulting from business           117.0           154.4
acquisitions, net
Non-current deferred income taxes                   343.4           317.7
Other assets                                      467.0        435.0    
                                                                 
                                               $  5,137.6    $  5,070.9  
                                                                 
                                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY                          
                                                                 
Current liabilities:
Short-term and current portion of long-term      $  655.4        $  613.2
debt
Accounts payable                                    813.2           764.5
Liabilities held for sale                           139.9           141.6
Other current liabilities                         517.7        503.1    
                                                                 
Total current liabilities                           2,126.2         2,022.4
                                                                 
Long-term debt                                      702.0           703.7
Other long-term liabilities                         735.7           680.6
Shareholders' equity:
Common stock                                        124.1           124.1
Capital in excess of par value                      792.3           777.7
Retained earnings                                   1,933.9         1,823.8
Accumulated other comprehensive loss                (291.3   )      (217.9   )
Treasury stock at cost                            (985.3   )    (843.5   )
                                                                 
                                                                 
Total shareholders' equity                        1,573.7      1,664.2  
                                                                 
                                               $  5,137.6    $  5,070.9  



A-6
AVERY DENNISON
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)

                                                (UNAUDITED)
                                                               
                                                 Three Months Ended
                                                                 
                                               Mar. 30, 2013  Mar. 31, 2012
                                                                 
Operating Activities:
                                                                 
Net income                                       $  57.8         $  43.9
                                                                 
Adjustments to reconcile net income to net
cash (used in) provided by operating
activities:
                                                                 
Depreciation                                        35.0            40.5
                                                                 
Amortization                                        16.5            18.9
                                                                 
Provision for doubtful accounts and sales           5.5             6.1
returns
                                                                 
Asset impairment and net loss on sale/disposal      0.4             5.1
of assets
                                                                 
Stock-based compensation                            9.2             11.8
                                                                 
Other non-cash expense and loss                     14.7            11.0
                                                                 
Changes in assets and liabilities and other       (204.8  )     (126.6  )
adjustments
                                                                 
Net cash (used in) provided by operating          (65.7   )     10.7    
activities
                                                                 
Investing Activities:
                                                                 
Purchases of property, plant and equipment,         (21.1   )       (24.0   )
net
                                                                 
Purchases of software and other deferred            (7.8    )       (12.0   )
charges
                                                                 
Sales of investments, net                         0.1          2.7     
                                                                 
Net cash used in investing activities             (28.8   )     (33.3   )
                                                                 
Financing Activities:
                                                                 
Net increase in borrowings (maturities of 90        135.1           134.1
days or less)
                                                                 
Payments of debt (maturities longer than 90         (0.3    )       (0.6    )
days)
                                                                 
Dividends paid                                      (27.1   )       (28.4   )
                                                                 
Share repurchases                                   (61.8   )       (72.2   )
                                                                 
Proceeds from exercise of stock options, net        26.4            3.9
                                                                 
Other                                             (6.2    )     (2.2    )
                                                                 
Net cash provided by financing activities         66.1         34.6    
                                                                 
Effect of foreign currency translation on cash    0.7          0.7     
balances
                                                                 
(Decrease) increase in cash and cash                (27.7   )       12.7
equivalents
                                                                 
Cash and cash equivalents, beginning of year      235.4        178.0   
                                                                 
Cash and cash equivalents, end of period        $  207.7      $  190.7   


Contact:

Avery Dennison Corporation
Media Relations:
David Frail, 626-304-2014
David.Frail@averydennison.com
or
Investor Relations:
Eric M. Leeds, 626-304-2029
investorcom@averydennison.com
 
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