Kansas City, Missouri-based bread maker Interstate Bakeries said it would restate some recent results and report a loss for the fourth quarter.
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The move comes during an investigation by federal regulators into how Interstate Bakeries set workers’ compensation and other reserves. The adjustments to be made affect the two quarters ended 15 November 2003 and 6 March 2004 and reflect a US$40m charge related to workers’ compensation resources to pretax income, reported Reuters.
Interstate Bakeries, which makes Twinkies and Wonder Bread, also said on a preliminary basis it had a net loss in the fourth quarter and for the full-year ended May 29 due to the workers’ compensation related charge, lower unit volume, and increases in employee-related costs.
