Avery Dennison CEO: Debt reduction still top use for company's cash

By Jennifer Lanning Drey

Portland, Ore., May 19 - Avery Dennison Corp.'s top priority for its cash continues to be debt repayment, Dean Scarborough, chief executive officer of the company, said during a Wednesday presentation at the Robert W. Baird Growth Stock Conference in Chicago.

"Certainly, as we feel more confident about the long-term prospects of the recovery and the economy coming back, we'll look to reassess that," Scarborough added.

The CEO suggested share buybacks and dividends as other potential uses for the company's cash in the future.

The company reduced its dividend about a year ago in order to focus on paying down debt due to the uncertain economy.

After paying down about $300 million in the back half of 2009, Avery Dennison is in good shape to move forward in an economic recovery, Scarborough said.

"Our balance sheet is definitely getting stronger, and at the same time, we've been increasing our operating leverage," he said.

Avery Dennison is an office products and branding company based in Pasadena, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.