Avery Dennison outlines growth plans

6 March 2006


At a meeting of securities analysts and institutional investors, Avery Dennison Corp provided an update on its growth strategies and operations. It highlighted growth opportunities, including rapid expansion in the emerging markets of Asia, Latin America and Eastern Europe.

"Emerging markets continue to play an important role in our future growth," said Dean A Scarborough, president and ceo. "We have more than doubled our share of sales in the emerging markets over the past five years, with revenue from these regions currently representing more than 20 per cent of the company's total sales. Opportunities for profitable growth in these markets are outstanding, and we have made significant investments to capture that anticipated growth."

He highlighted the progress to date for Avery Dennison's new RFID business, stating that "similar to the emerging markets today, RFID will one day represent an entirely new platform for growth." He announced that global consumer products manufacturer Kimberly-Clark recently selected Avery Dennison as its supplier for Gen 2 inlays, the industry's current standard for RFID labels. The company is targeting approximately $10M in revenue from RFID inlays this year, including sales related to Kimberly-Clark's implementation plans.

The timing and pace of industry development are highly uncertain, he said, but Avery Dennison "has targeted a market share goal of 30 per cent by the end of 2006, which should eventually translate into a business contributing hundreds of millions of dollars of revenue annually. Our top priorities are growth and productivity improvement."



Contact

Avery Dennison Tel: +1 626 304 2204




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