Labeling firm Avery Dennison forecasts weak quarterly profit

(Reuters) - Avery Dennison forecast fourth-quarter earnings below analysts' expectations, as slower inventory buildup at its customers due to an uncertain economic environment hurt demand for its labeling products.

Avery provides branding and information labeling for several industries such as apparel, automotive, consumer packaging, manufacturing and retail.

The company expects its fourth-quarter earnings per share to be in the range of $2.05 to $2.20, compared with analysts' average estimate of $2.32, according to LSEG data.

Sales in the materials business, the company's biggest, fell 14% to $1.46 billion in the third quarter. The unit produces pressure-sensitive labels and graphics ranging from vehicle wraps to architectural products.

The Ohio-based company's net income fell to $138.3 million, or $1.71 per share, in the quarter ended Sept. 30, from $221.5 million, or $2.70 per share, a year earlier.

Its overall revenue fell to $2.09 billion, missing analysts' estimates of $2.17 billion.

(Reporting by Abhinav Parmar; Editing by Maju Samuel)