US snack cake maker Tasty Baking has reported a net loss of US$1.4m, or 18 cents a share, for the third quarter to 27 September, compared to a net loss of $0.4m, or 5 cents a share, a year earlier. Gross sales were down 4% to $60.8m, while net sales declined 3% to $38.9m. The Philadelphia, Pennsylvania-based company said increased marketing spending and expansion of the direct store delivery system into the Cleveland and Pittsburgh markets resulted in incremental pre-tax expense of $2m compared to the third quarter of the prior year.