Milling & Baking News - July 20, 2004 - 8

L AT E N E W S
Continued from Page 1
I.B.C.'s profit margins have dropped to 4.2%, versus 7%
to 8% a few years ago. "The negative outlook reflects
the company's near-term need to further adjust or
waive financial covenants for the next year, beginning
in the current quarter ending Aug. 21, and to reduce
required term-loan amortization payments over the
next few years to maintain adequate financial liquidity
while it restructures its business," Moody's said. I.B.C.
had $540 million of debt outstanding as of March 6.

As the harvest of
soft red winter
wheat was winding
down, the U.S.D.A.
reduced its production
estimate to 383 million
bus. The revised
estimate was off 14
million bus from
the June forecast. Still,
the soft red outturn
would be about
4 million bus larger
than a year ago.

WESTFIELD, MASS. - For $1.2 million,
Weston Foods Inc., Horsham, Pa., has
purchased land in central Massachusetts in order to build a bakery that will
bake either Freihofer's bread or Arnold
bread, the The Republican of Springfield
Mass. reported. The deal follows a February announcement by Gary J. Prince, president
of Weston Foods Horsham-based parent, Weston
Foods, Inc., that the company would build three new
bread and roll bakeries in the U.S. this year. The new
baking plant will cover about about 140,000 square
feet and employ 50 to 85 workers.

Weston buys
land for
new bakery

PURCHASE, N.Y. - Operating profit of
the Frito-Lay North America unit of PepsiCo, Inc. rose 6% to $560 million in the
second quarter ended June 12, compared
with $530 million last year. Sales rose 4%
to $2.24 billion from $2.15 billion. The company said Frito-Lay's overall sales volume
rose 1.5% in the quarter, benefiting from continued
growth in salty snacks. However, weakness in sales
of non-salty, Quaker-brand snacks shaved a full percentage point from volume growth. Operating profit
in the company's Quaker Foods North America unit,
encompassing all Quaker products besides snacks, fell
2% to $91 million from $94 million last year as revenue
dipped 2% to $303 million from $309 million.

Quaker drags
earnings
at PepsiCo

WASHINGTON - A food allergen labeling bill that tentatively had been scheduled for House of Representatives vote last
week now likely will not be considered by
the full House until September. Julie Edwards, a spokesperson with Representative Nita Lowey of New York, a leading
sponsor of the legislation, said that pending appropriations legislation has pushed the allergen bill back on the
House calendar to the point it probably will not come to
a vote before Congress' August recess.

House delays
vote on
allergen bill

CHICAGO - The Environmental
Protection Agency said July 16 that
its Region 5 office has cited Lesaffre
Yeast Corp. for alleged violations at the
company's yeast manufacturing plant
in Milwaukee. The E.P.A. said organic
compound emissions from Lesaffre's
fermenters exceeded the maximum allowed in the
company's operating permit and in state regulations. Noting that the violation findings are preliminary, the agency said the E.P.A. may issue a
compliance order, assess an administrative penalty
or file suit against the company. Lesaffre has 30 days
from receipt of the notice to meet with the E.P.A. to
discuss resolving the allegations. MBN

E.P.A. cites
yeast maker
for violations

8 / Milling & Baking News, July 20, 2004

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Milling & Baking News - July 20, 2004

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