Interstate Bakeries’ Profit Is Double Forecast
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Interstate Bakeries Corp., maker of Hostess Twinkies and Wonder Bread, reported operating profit of $15.1 million, or 30 cents a share, double the 15 cents analysts expected.
The nation’s largest wholesale baking company said its year-earlier profit from operations was 34 cents a share, but it did not give a full dollar figure. Those results exclude a charge of 22 cents a share because of an eight-day work stoppage, costs from starting a new bakery and workers’ compensation expenses, the company said. Including the charge, the year-ago net income was $7.81 million, or 12 cents a share.
The Kansas City, Mo.-based company benefited from lower production costs as it closed and consolidated bakeries. It also had boosted bread prices to a 20% premium over competitors.
Revenue fell 5.4% to $820 million.
Interstate Bakeries shares rose $3.27 to close at $20.55 on the NYSE.
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