July 24 (Bloomberg) -- Avery Dennison Corp., a label manufacturer, climbed the most in more than eight months after a narrower forecast for full-year profit exceeded analysts’ estimates.
Avery Dennison advanced 7.3 percent to $30.31 at the close in New York for the biggest gain since Oct. 27.
The company, which has seen revenue declines in the last three quarters, plans to reduce annual costs by more than $100 million by mid-2013. Avery Dennison will reduce certain corporate-support functions, Chief Executive Officer Dean Scarborough said on a call with analysts today after the company issued its forecast.
Profit from continuing operations may total $1.90 to $2.05 a share in 2012, the Pasadena, California-based company said in a statement. That compared to an average analyst estimate of $1.96 a share, according to data compiled by Bloomberg. The company had previously forecast $1.80 to $2.15.
Second-quarter adjusted profit of 56 cents a share topped the average analyst forecast of 54 cents, according to data compiled by Bloomberg.
Revenue slipped 1 percent to $1.53 billion. That compared to an average analyst estimate of $1.54 billion.
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