Exhibit 12

                          AVERY DENNISON CORPORATION
               COMPUTATION OF RATIO OR EARNINGS TO FIXED CHARGES
                             (Dollars in Millions)



                                                              Three Months Ended           
                                                        -------------------------------    
                                                        April 3, 1999    March 28, 1998    
                                                        -------------    --------------    
                                                                                  
Earnings:                                                                                  
    Income before taxes                                       $28.2          $82.3         
    Add:   Fixed Charges*                                      14.4           12.9         
           Amortization of capitalized interest                  .4             .4         
    Less:  Capitalized interest                                 (.2)          (1.1)        
                                                              $42.8          $94.5         
                                                          =========      =========         
                                                                                           
*Fixed Charges:                                                                            
    Interest expense                                          $10.4          $ 8.1         
    Capitalized interest                                         .2            1.1         
    Amortization of debt issuance costs                          .1             .1         
    Interest portion of leases                                  3.7            3.6         
                                                                                           
                                                              $14.4          $12.9         
Ratio of Earnings to Fixed Charges                              3.0            7.3         
                                                          =========      =========          



The ratios of earnings to fixed charges were computed by dividing earnings by
fixed charges. For this purpose, "earnings" consist of income before taxes plus
fixed charges (excluding capitalized interest), and "fixed charges" consist of
interest expense, capitalized interest, amortization of debt issuance costs and
the portion of rent expense (estimated to be 35%) on operating leases deemed
representative of interest.