US: IBC posts improved first-quarter results
Bankrupt US baked goods producer Interstate Bakeries Corp. (IBC) has reported a rise in sales and narrowing losses for the first quarter.
However, IBC admitted that it still had "a long way to go" in building operating capability and lowering its cost structure.
In its regular filing with the Securities and Exchange Commission (SEC), IBC said net revenues for the 12 weeks to 25 August reached to US$689.8m, up from $684.2m a year earlier.
IBC recorded an operating loss for the period of $0.3m, down from $7.8m in the same period a year ago.The net loss for the period was $16.0m, against $26.3m a year ago.
IBC said operating results in the first quarter of the current fiscal year included a charge of $10.2m related to the closure of its bread operations in Southern California.
"Our improvement in results during our first quarter reflect both tactical operating changes underway that are designed to improve IBC's efficiency and profitability," said CEO Craig Jung. "Our results are on-track and encouraging. At the same time, we recognise we have a long way to go in building operating capability and lowering our cost structure to ensure the company's long-term survival and success."
Jung added that critical to that success would be reaching an agreement with the Teamsters union over its restructuring plans. The company has been granted a further 30-day extension by the bankruptcy court to file its reorganisation plans, which are contingent on it reaching agreement with the Teamsters union. "We remain open to constructive discussions with the Teamsters," Jung said.
Interstate Bakeries Corp.'s stand-off with trade union officials over the restructuring of the company could be nearing an end after a mystery financial investor expressed interest in buying a stake i...
A US bankruptcy court has given Interstate Bakeries Corp. the green light to solicit for financing to fund its plans to revive the business....
Interstate Bakeries Corp. said today (16 January) it would push on with its plans to restructure the ailing US baker after no other consortiums stepped forward to save the company....
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Column: Kraft Heinz, Unilever and sustainability
- Unilever 'lining up spreads sale'
- UK own-label firm Park Cakes sold in MBO
- Immigration crackdown "risk" for US dairy industry
- BRF plant suspended amid bribery allegations
- Fonterra cuts earnings forecast