Milling & Baking News - August 10, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods LATE NEWS CHICAGO - Operating income of Sara Lee Bakery Group in its fiscal fourth quarter ended July 3 totaled $35 million, up 65% or 66% from $21 million last year, reflecting strong growth for Sara Lee branded products, additional cost savings resulting from restructuring actions and the impact of a 53rd week. Sales increased 8.8% to $898 million. Sales of Sara Lee-brand bread grew more than 50% for the quarter compared with the same year-ago period, driven by the success of Sara Lee fresh bakery bread, buns and rolls introduced during the past 20 months. In its fresh bakery bread unit, Sara Lee Continued on Page 12 Sara Lee Bakery's income soars U.K. equipment maker to purchase APV Baker plant in North Carolina LONDON - Turkington Industries, a bakery equipment manufacturer based in northern England, has agreed to buy the Goldsboro, N.C., plant of bakery equipment maker APV Baker, a subsidiary of London-based Invensys p.l.c. The deal, terms of which the companies did not disclose, does not affect APV Baker's two other manufacturing sites, located in Peterborough, England, and Grand Rapids, Mich. Subject to completion of what the companies termed "minor details," the transaction will close by the end of August. With annual revenue of about $470 Continued on Page 14 / AUGUST 10, 2004 U.S. flour production in '03 edges upward from seven-year low WASHINGTON - The final summary of U.S. flour production for 2003, issued Aug. 3 by the Bureau of the Census in the U.S. Department of Commerce, reveals an upward adjustment of 1,993,000 cwts from the preliminary estimate of U.S. mill output based on quarterly reports. As a result, production of wheat flour in 2003, placed by the summary at 396,215,000 cwts, showed an increase of 1,515,000 cwts, or 0.4%, from 2002, but still was down 25,055,000 cwts, or 5.9%, from the record output of 421,270,000 cwts in 2000. The relatively modest increase in 2003 output from the prior year follows two successive years of sharp decreases. Those two successive years of output reductions were themselves unusual, contrasting with the previous period when output rose almost consistently from year to year. These were some of the largest flour output decreases in more than 50 years, cutting 2002 production to the smallest total since 1995, when mills produced 388,689,000 cwts. Prior to 2002, output had not been less than 400 million cwts since 1998, when it was 398,914,000 cwts. Daily capacity estimates in the Flour Milling Products Summary for 2003 show increases over both the preliminary numbers and the prior year. The national average mill operating rate ended moderately lower but still exceeded the low in 2001. It was well below highs in 2000. Wheat grind for 2003 Continued on Page 34 World trade talks back 'on track' GENEVA - A breakthrough in negotiations for a new global trade agreement under the World Trade Organization was announced July 30 in Geneva. There, negotiators representing 147 member states of the W.T.O. agreed on a framework for completing the trade talks and implementing a new global trade treaty. "Today's decision is a crucial step for global trade," said U.S. Trade Representative Robert B. Zoellick. "After the detour in Cancun, we have put the W.T.O. negotia- tions back on track. We have laid out a map for the road ahead. Next, we will negotiate the speed limits for how far and how fast we will lower trade barriers." W.T.O. Director-General Supachai Panitchpakdi applauded what he called a "truly historic" achievement that included significant commitments required to begin work on a final trade agreement. Dr. Supachai pointed out the tremendous progress that has been made in advancing Continued on Page 16 Too good to resist Story on Page 41 inside Ingredient suppliers hustle to meet demand for fiber in grain foods. THIS WEEK Ingredient Schlotzsky's files for Chapter 11 bankruptcy Industry overcapacity impacts results at AIPC Flowers taps manufacturing v.p., new presidents Week 15 24 32 66

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Milling & Baking News - August 10, 2004