LOUISVILLE, Ky. – Liquor company Brown-Forman Corp. said Thursday its first-quarter profit fell 7 percent, taking a shot to its earnings when a problem with tequila production caused a $22 million pretax charge. It also lowered its annual earnings projection as a result of the charge.

The Louisville-based owner of the Jack Daniel's brand reported a mixed performance for its leading brands in the latest quarter.

Its shares fell $4.87, or 6.3 percent, to $72.15 in morning trading.

For the three months ended July 31, earnings totaled $88.2 million, or 73 cents per share, compared to $95.3 million, or 77 cents a share, in the year-ago period.

Net sales rose 7 percent to $790 million from $739.1 million a year ago.

The problem with tequila production resulted in a 13-cent-per-share charge for the quarter.

It lowered its earnings-per-share projection for the current full year to $3.60 to $3.85 per share, representing growth of 1 percent to 7 percent over prior-year earnings. Excluding the charge, the company's full-year guidance remains unchanged. The company previously forecast per-share earnings of $3.73 to $3.98 for the year.

The company said the charge stemmed from an abnormal number of agave plants in Mexico that are dead or dying. The plants are the main raw material used in the company's tequila production.

“The loss of agave plants had reduced our inventory, but we do not believe this will constrain our ability to build our tequila brands to their full potential,” said company CEO Paul Varga.

Global case sales for the company's flagship Jack Daniel's Tennessee Whiskey brand declined 1 percent for the quarter as gains in Eastern Europe and flat U.S. volumes were offset by declines in other key overseas markets. However, net sales for Jack Daniel's rose in the mid-single digits, boosted by price increases and a weak U.S. dollar.

Global case sales for its Finlandia vodka grew in the high single digits, led by more double-digit growth in Eastern Europe. The brand's net sales rose by double digits, reflecting higher volumes and pricing gains.

Southern Comfort case sales declined, which was offset partially by price increases. The brand's net sales declined in the mid-single digits for the quarter.

The company posted double-digit increases in net sales for its Sonoma-Cutrer and Bonterra wines, its French liqueur brand Chambord, its Italian liqueur brand Tuaca and its Woodford Reserve bourbon.

Varga said the company remains confident about long-term growth opportunities for its premium and super-premium brands, despite current “challenging economic times.”