UPDATE 1-Avery Dennison warns 4th-qtr results may miss

* Sees lower-than-expected 4th-qtr sales

* Sees lower operating profits than previous forecast

* Tax benefit may keep net profit in line with forecast

CHICAGO, Dec 17 (Reuters) - Avery Dennison Corp (AVY.N) said on Wednesday that its fourth-quarter operating profits would fail to meet its previous forecast, adding conditions in its markets have "deteriorated more than expected."

The company, which makes self-adhesive labels and other products used by retailers, auto suppliers and a host of other industries, said lower revenue, together with expenses related to ongoing cost-cutting initiatives, would weigh on it operating profits.

The Pasadena, California-based company held out the possibility that it might still meet its earnings per share target if it enjoyed an unspecified one-time tax benefit. (Reporting by James Kelleher, editing by Leslie Gevirtz)