Robert B. Lewis
Thank you, Tony. Good morning, everybody. As Tony highlighted, the second quarter of 2012 was challenging as we delivered adjusted earnings per share at the low end of our expectations. The biggest impact was in our metal container business where economic weakness in Europe led to a weaker demand in certain categories, particularly general line cans and the hot dry growing conditions led to a slower start to the pack and a less favorable mix of products sold, largely due to the timing of shipments.
As a result, we delivered adjusted earnings per share of $0.55 in the second quarter, versus $0.53 in the prior year quarter. On a consolidated basis, net sales for the second quarter of 2012 were $821.6 million, a decrease of $600,000, primarily as a result of unfavorable foreign currency of $18.4 million, partially offset by higher net sales in the plastic container business and the pass through of higher raw material costs.
Net income for the second quarter was $10.6 million or $0.15 per diluted share, compared to second quarter of 2011 net income of $51.2 million or $0.73 per share. The primary drivers behind the change in net income was a $38.7 million loss on early extinguishment of debt recorded this quarter and $27 million net benefit of the Graham termination fee recorded in the second quarter of 2011.Foreign exchange remain neutral to earnings as we continue to be effectively hedged. Interest expense before the loss on early extinguishment of debt for the quarter decreased to $0.5 million to $16 million versus $16.5 million in the same period a year ago. This decrease was largely driven by lower average interest rates, partially offset by higher average borrowings as a result of the recent 5% senior note issuance and the refinancing of our senior secured credit facility in July 2011.