Avery Dennison Tumbles on Lower 2012 Forecast: Los Angeles Mover

Avery Dennison Corp. (AVY), the office- supply manufacturer, dropped the most in more than three months after the company’s preliminary fourth-quarter earnings and 2012 forecast trailed analysts’ estimates.

Avery Dennison, based in Pasadena, California, fell 5.4 percent to $27.15 at the close in New York, for the steepest decline since Oct. 19.

The company, which this month announced plans to sell its office and consumer-products arm, said it probably earned 36 cents per share in the fourth quarter. Profit in 2012 may be $1.80 to $2.15 due to “uncertainty, particularly in Europe,” Chief Financial Officer Mitchell Butier said on a call. Analysts in a Bloomberg survey had estimated 46 cents and $2.72 respectively.

“The earnings dilution from selling the office-products division was much greater than people initially thought,” said Ghansham Panjabi, an analyst with Robert W. Baird & Co. in New York, who has a “neutral” rating on the shares.

Avery Dennison is selling the unit to 3M Co. (MMM)

David Frail, a spokesman for Avery Dennison, didn’t have a comment.

To contact the reporter on this story: Alexander Yablon in New York at ayablon@bloomberg.net

To contact the editor responsible for this story: Ville Heiskanen at vheiskanen@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.