Avery Dennison Corporation
) has settled its patent infringement and antitrust litigation
) through a mutually acceptable agreement. The agreement allows
Avery to continue the sale of its OmniCube products.
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The litigation started when 3M charged Avery for infringing the
former's patent and demanded a preliminary injunction to stop
Avery from selling OmniCube, a Type XI sheeting product that
boosts the visibility of road signs at night. The litigation also
included other highway and transportation products.
Avery, which is among the leading office supply companies along
United Stationers Inc.
ACCO Brands Corporation
), also filed its own lawsuits for patent infringement and
antitrust violations. The court denied 3M's plea and both the
companies agreed to dismiss three pending cases.
Pasadena, Calif-based Avery manufactures pressure-sensitive
materials, tickets, tags, labels and other converted products.
Avery has over 200 manufacturing and distribution facilities
encompassing more than 60 countries. Its clientele is spread
across the U.S., Europe, Asia, Latin America and other regions.
Avery reported fourth-quarter 2012 adjusted earnings of 54 cents
per share, up 50% from the year-ago adjusted earnings of 36 cents
per share and ahead of the Zacks Consensus Estimate of 49 cents.
Total revenues for the quarter increased 5.3% to $1.5 billion
from $1.4 billion in the prior-year quarter. Revenues were ahead
of the Zacks Consensus Estimate of $1.4 billion.
Avery's restructuring initiatives are expected to deliver
annualized savings of more than $100 million in 2013.
Furthermore, with the divestiture of the underperforming Office
and Consumer Products unit, the company will be able to focus on
its market-leading, pressure-sensitive materials business and
Retail Branding and Information Solutions segment.
Avery currently retains a short-term Zacks Rank #1 (Strong Buy).