Avery Dennison Corporation AVY reported adjusted earnings of 94 cents per share in the first quarter of 2016, which increased 16% from 81 cents earned in the year-ago quarter. Earnings also beat the Zacks Consensus Estimate of 86 cents, with a positive surprise of 9%.Including restructuring costs and other items, earnings from continuing operations were 98 cents per share in the quarter, compared with 78 cents in the year-ago quarter. Total revenue declined around 3% to $1,486 million from $1,528 million in the prior-year quarter. Moreover, revenues lagged the Zacks Consensus Estimate of $1,496 million. On an organic basis, sales grew 4% year on year.Cost of sales in the reported quarter went down 3.2% year over year to $1,063 million. Gross profit dipped 1.7% to $422.6 million while gross margin expanded 40 basis points (bps) to 28.4%.Marketing, general and administrative expenses were $278.2 million compared with $300.4 million in the year-ago quarter. Adjusted operating profit increased 12% to $144.4 million. Adjusted operating margin improved 130 bps on a year-over-year basis to 9.7%.Segmental PerformanceRevenues from the Pressure-sensitive Materials segment dropped 3% to $1,092 million. On an organic basis, sales increased 4%. Adjusted operating profit rose 13% to $140.6 million from $128.5 million in the year-ago quarter.Revenues from the Retail Branding and Information Solutions segment declined 3% to $378 million from $388 million in the year-earlier quarter. Organic sales, however, increased 4%. The segment’s adjusted operating income improved 7.8% to $29.5 million.The Vancive Medical Technologies segment reported net sales of $15.4 million, down 20% from $19.3 million in the year-ago quarter. On an organic basis, sales declined 18%. The segment reported adjusted operating loss of $0.8 million compared to an operating loss of $1.0 million a year ago.Financial UpdatesAvery Dennison had cash and cash equivalents of $169.6 million at the end of first-quarter 2016 compared with $189 million at the end of first-quarter 2015. The company used $6.3 million of cash in operating activities in the reported quarter compared with cash flow of $4.6 million in the year-ago quarter.As of quarter end, Avery Dennison’s long-term debt increased to $963.3 million from $940.3 million as of Apr 4, 2015. The company repurchased 1.5 million shares in the first quarter of 2016 for $96 million and paid $33 million in dividends.Cost Reduction ActivitiesIn the first quarter, Avery Dennison realized approximately $27 million in savings from restructuring. The company incurred restructuring charges of approximately $6 million.GuidanceFor 2016, Avery Dennison raised its adjusted earnings per share guidance to a new range of $3.75–$3.90 from the previous projection of $3.65–$3.85, reflecting some relief from currency translation headwinds, combined with strong operating performance in the first quarter. Including one-time items, earnings are envisioned in a band of $3.25–$3.40 per share.Avery Dennison remains confident that the consistent execution of strategies will facilitate long-term goals for superior value creation through a balance of profitable growth and capital discipline.Pasadena, CA-based Avery Dennison manufactures pressure-sensitive materials. The company has over 200 manufacturing and distribution facilities in more than 60 countries.Zacks RankCurrently, Avery Dennison carries a Zacks Rank #2 (Buy). Some other favorably ranked industrial product stocks include ACCO Brands Corporation ACCO, Altra Industrial Motion Corp. AIMC and Alarm.Com Holdings, Inc. ALRM. All three stocks carry a Zacks Rank #2.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ALTRA INDUS MOT (AIMC): Free Stock Analysis Report AVERY DENNISON (AVY): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report ALARM.COM HLDGS (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research