Avery Dennison faces risks from global economic conditions, political uncertainty, changing environmental standards, competitor actions, raw material costs, currency fluctuations, and the execution/integration of acquisitions. Legal proceedings, including patent infringement litigation, pose a potential for significant financial losses. Uncertain tax positions and environmental liabilities also present risks. The company's ability to access capital and maintain investment-grade credit ratings is also a concern.
Financial Upside
Avery Dennison anticipates increased net sales due to higher volume and growth in Intelligent Labels, partially offset by raw material price reductions. Productivity initiatives and restructuring actions are expected to generate savings. Higher volume and a legacy legal matter accrual in the prior year are expected to contribute to increased net income. Improved market conditions and adjusted free cash flow are also positive indicators.
