Milling & Baking News - August 17, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods / I.B.C. estimates fiscal '04 loss at $25.8 million; issues new notes AUGUST 17, 2004 N E W S F E AT U R E Bread and cake sales still Convertible bonds sold declining but market as part of program to share steadies amend credit facility KANSAS CITY - Interstate Bakeries Corp. in the year ended May 29 sustained a loss of approximately $25,800,000, according to preliminary results issued Aug. 9. In fiscal 2003, the company earned $27,450,000, equal to 62c per share on the common stock. Fiscal 2004 net sales were estimated by I.B.C. at $3,467,500,000, down 1.7% from the previous year. Also last week, I.B.C. issued a brief update of business in fiscal year 2005 to date, noting that bread and cake sales have continued to decline but that the company's market share has stabilized. The release of financial results had been delayed because of an I.B.C. audit committee investigation into a $40 million increase in workers compensation reserves. The Aug. 9 release for preliminary results this year compares with a July 14 release last year of final results at the end of fiscal 2003. The audit committee has determined Continued on Page 14 LATE KANSAS CITY - Interstate Bakeries Corp. last week sold $100 million of 6% senior subordinated convertible notes in a private placement. The sale was made in connection with an agreement between I.B.C. and existing lenders to amend the baking company's senior credit facility. Buyers of the convertible notes will have an option for a period of 60 days to purchase an additional $20 million in securities. The notes will be convertible into I.B.C. common stock at the option of the holders at a rate of $10.1025. Fully converted into I.B.C. stock, the securities would equate to 11.9 million additional shares of I.B.C. stock, adding 26% to the number of I.B.C. shares based on the 45.4 million shares currently outstanding. The notes will pay interest semi-annually at an annual rate of 6%, will mature on Continued on Page 9 NEWS WASHINGTON - The Dietary Guidelines Advisory Committee met for the final time last week to discuss proposed changes to the Dietary Guidelines for Americans, and it did not alter its stance in promoting a shift away from enriched grain products in favor of whole grains. The committee decided to strengthen proposed language tying whole grain consumption to lower risks of certain diseases and improved weight management. But wording that "Americans consume substantial Continued on Page 8 Committee again backs whole grains inside MGP Ingredients transitions into the future Story on Page 23 ConAgra Foods unveils finely textured whole-wheat flour OMAHA - Using new milling technology, ConAgra Food Ingredients has introduced Ultragrain White Whole Wheat flour, a product the company describes as a "revolutionary whole-grain flour." The new product is scheduled to be formally unveiled Aug. 15 at the International Baking Industry Exposition at Las Vegas. Milled from white wheat as well as other wheat classes, Ultragrain offers in a 100% whole wheat flour the sweet taste and smooth texture associated with refined flour products, ConAgra Foods said. The company said it is using special flour milling equipment and patent-pending milling technology to mill Ultragrain. "Ultragrain provides the food industry and Continued on Page 11 THIS WEEK Ingredient Grebe Bakery to take over Crestwood production Branded growth drives gains at Sara Lee Bakery Daily flour milling capacity up in eight states Week 10 12 27 31

Table of Contents for the Digital Edition of Milling & Baking News - August 17, 2004


Milling & Baking News - August 17, 2004