Crown Holdings 1Q income falls on debt charge

PHILADELPHIA (AP) -- Packaging products supplier Crown Holdings Inc. said Wednesday its net income dropped in the first quarter due to costs related to debt repayment and other items.

The company reported an increase in beverage can sales, especially in Brazil and the Asia-Pacific region, and lower depreciation costs. However it said profit in its European food business decreased and it took a $38 million charge on the early extinguishment of debt.

In January, Crown Holdings sold $1 billion in new debt securities. That debt is due in 2023. The company used the proceeds of the sale to repay $500 million in debt under its senior secured term loan and bought back $400 million in senior notes due in 2017.

Crown Holdings said its net income fell to $41 million, or 28 cents per share, from $69 million, or 46 cents per share. If one-time costs and gains are excluded the company said it earned 50 cents per share, up from 46 cents per share in the first quarter of 2012. Revenue rose 1 percent, to $1.97 billion from $1.95 billion.

Analysts, on average, expected the company to report net income of 49 cents per share and $2.02 billion in revenue, according to FactSet.

Shares of Crown Holdings fell 49 cents to close Wednesday's regular session at $40.51 before the results were released. In aftermarket trading, the stock lost another $1.52, or 3.8 percent, to $38.99.