Tasty Baking sustains loss in third quarter
October 31, 2008
by Josh Sosland
PHILADELPHIA — Tasty Baking Co., in the third quarter ended Sept. 27, sustained a net loss of $1,352,000, versus net income of $210,000, equal to 3c per share on the common stock, during the third quarter last year. Net sales were $42.8 million, up 1% from the same period in 2007. Results for 2008 included $1 million in after-tax severance costs associated with the planned transition to a new baking plant at the Philadelphia Navy Yard in late 2009. Accelerated depreciation in connection with the move added expenses of $800,000 and $900,000, respectively, in third-quarter results for 2008 and 2007. Charles P. Pizzi noted that in addition to charges associated with the move, Tasty faced a $2.3 million increase in ingredient and packaging costs versus the third quarter last year. He said construction of the new plant was proceeding on time and within budget. "We are excited about the cost savings the new manufacturing facility will offer as well as the increased production flexibility from the new state-of-the-art equipment," he said.