Tasty Baking Co. said its operational results are likely to be pinched by the completion of its new manufacturing facility, which is located in the Philadelphia Navy Yard.
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Speaking at the company’s earnings conference call today (2 November), CEO Charles Pizzi said the new bakery and distribution centre project was “progressing well” and “remains within budget and on or head of schedule”.
However, he added that the completion of its first production line would have a negative impact on operating results.
“While the completion of commissioning our first production line in the commercial production of pies in the new facility are exciting milestones, the ongoing start up, commissioning and transition period will likely impact on ongoing operating results. During this period we may experience incremental scrap, transportation and labour expenses.”
Nonetheless, he added that the project had passed some “significant” project milestones.

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By GlobalData“Building construction was completed on 1 October, two weeks ahead of our original schedule,” Pizzi said.
“We have also completed facility testing and all the utility systems are operational …and the full commissioning process for the remaining six production lines will continue into the second quarter of 2010. This marks a significant achievement in the transformational process.”
Earlier today, Tasty Baking Company posted narrowing third-quarter losses as sales edged up on volume growth.
The Philadelphia-based baker said that losses decreased to US$0.5m in the three month period ended 26 September, down from losses of $1.4m in the comparable period of last year.
Net sales rose 1.8% during the period, climbing from $42.8m last year to $43.6m this year. The company said the increase in sales was driven by higher volumes and higher selling prices during the three-month period.
Pizzi told analyst that the company anticipates some additional spend on the marketing side for its product lines.
“Not to get into the area of specific competition but we do have a plan in place and we will make sure that there is execution on those plans but at this time, that’s all the information I can give you.”