GOLDEN, Colo. (AP) _ Adolph Coors Co. reported a 99 percent drop in first-quarter earnings Monday, mainly due to higher costs of packaging material and lower profits for its Coors Brewing Co. subsidiary.

The company reported net income of $92,000, or practically zero cents per share, from $6.9 million, or 18 cents a share, from the same period a year ago.

Sales totaled $326.6 million vs. $318.5 million, up 2.6 percent.

Coors' shares fell 50 cents to close at $16.25 on the Nasdaq stock exchange.

Earlier this month, Coors Brewing announced its first-quarter sales were a record 3.98 million barrels of beer and other malt beverages, up from 3.9 million barrels a year earlier.

The first-quarter results would have been weaker if it weren't for a one-time gain of $1.3 million after tax from the sale of a company-owned distributorship.

Peter H. Coors, vice chairman and chief executive officer of Coors Brewing, said the company has some ``productivity initiatives'' under way to help offset the increased packaging costs.

Adolph Coors Co., founded in 1873, is the holding company for Coors Brewing Co., the third-largest brewer in the United States.