Revenue during the quarter grew 6.60 percent to $1,550.80 million from $1,454.80 million in the previous year period. Gross margin for the quarter expanded 47 basis points over the previous year period to 27.43 percent. Total expenses were 90.61 percent of quarterly revenues, down from 91.34 percent for the same period last year. This has led to an improvement of 73 basis points in operating margin to 9.39 percent.

However, the adjusted operating income from continuing operations for the quarter stood at $145.60 million compared to $126 million in the prior year period. At the same time, adjusted operating margin from continuing operations improved 73 basis points in the quarter to 9.39 percent from 8.66 percent in the last year period.

"I am pleased to report another year of progress toward our long-term goals," said Mitch Butier, president and chief executive officer. "We drove strong organic sales growth and margin expansion through our strategy to accelerate growth in high value categories and disciplined execution in our base businesses.

For financial year 2017, the company forecasts diluted earnings per share to be in the range of $4.10 to $4.30. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $4.30 to $4.50 on adjusted basis.

The company has spent $435.40 million cash to meet investing activities during the year as against cash outgo of $142.90 million in the last year. It has incurred net capital expenditure of $198.10 million on net basis during the year, up 37.67 percent or $54.20 million from year ago.

The company has spent $106.20 million cash to carry out financing activities during the year as against cash outgo of $367.30 million in the last year period.

Cash and cash equivalents stood at $195.10 million as on Dec. 31, 2016, up 22.86 percent or $36.30 million from $158.80 million on Jan. 02, 2016.

Working capital turns negative
Working capital of Avery Dennison Corporation has turned negative to $99.50 million on Dec. 31, 2016 from positive $316.30 million on Jan. 02, 2016. Current ratio was at 0.95 as on Dec. 31, 2016, down from 1.22 on Jan. 02, 2016.

Cash conversion cycle (CCC) was almost stable at 16 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 29 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 21 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 34 days for the quarter, when compared with the previous year period.