RTTNews | Oct 21, 2020 07:16AM EDT

07:15 Wednesday, October 21, 2020 (RTTNews.com) - Avery Dennison Corp. (AVY) reported better-than-expected results for the third-quarter. Also, the company increased its dividend by 7%.

The company's third-quarter GAAP net income was $150.5 million or $1.79 per share compared to $144.6 million or $1.71 per share last year.

On a non-GAAP basis, adjusted net income totaled $160.5 million or $1.91 per share, versus $141.0 million or $1.66 per share reported a year ago.

Total net sales amounted to $1.73 billion, 1.8% lower than the previous year's sales of $1.76 billion.

Analysts polled by Thomson Reuters expected earnings of $1.53 per share on revenue of $1.7 billion for the quarter. Analysts' estimate typically exclude certain special items.

"Revenue came in significantly better than we anticipated at the start of the quarter, which, combined with our cost reduction actions, enabled us to deliver strong earnings growth and free cash flow," said Mitch Butier, chairman, president and CEO.

The company continues to estimate incremental savings from restructuring actions, net of transition costs, of $60 million - $70 million during 2020, and carryover savings, net of transition costs, of about $70 million in 2021.

In addition, the company "targets nearly $150 million in net temporary savings in 2020, the vast majority of which is expected to become a headwind as markets continue to recover."

Further, Avery Dennison raised its dividend rate by 7%, and resumed share repurchase late in the third quarter.

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