SOUTH HACKENSACK, N.J. (AP) -- Plastic packaging maker AEP Industries Inc. said Monday that its net income dropped in the fiscal second quarter, hurt by an expense related to accounting, severance payments, a stock option expense and other costs.
The company lowered its volume expectations because of a weaker-than-expected North American market and product delays and shares fell 12 percent in morning trading.
Net income for the three months ended April 30 fell to $222,000, or 4 cents per share. That compares with net income of $4.8 million, or 88 cents per share in the prior quarter. However, excluding stock option expense, an increase in a reserve related to an accounting method, depreciation and amortization expense and interest expense, adjusted earnings totaled $24.4 million.
Revenue fell 4 percent to $284.3 million from $296.7 million, hurt by lower volume and lower average selling prices resulting from lower resin costs.
The company now expects volume to be flat in 2013, from a prior guidance of a 3 percent increase. The revision is due to a weaker-than-expected North American market, pricing, unexpected delays in product qualification efforts and equipment installation.
AEP's stock fell $9.82, or 11.9 percent, to $72.60 during morning trading. The stock has traded between $35.22 and $85.80 over the past 52 weeks.