Milling & Baking News - March 14, 2006 - 8

B U S I N E S S

Interstate Bakeries details plans
for Indiana, Michigan operations
KANSAS CITY - Interstate Bakeries Corp. in a Feb. 27 filing with the
U.S. Bankruptcy Court said it plans to
consolidate routes, depots and retail
outlets in its Upper Midwest Profit
Center (P.C.), affecting approximately
230 employees in Indiana and Michigan. The company said that, subject
to bankruptcy court approval, it expected to complete the consolidation
by March 13.
I.B.C. said it is still considering whether additional consolidations, restructurings or closings are warranted in the
Upper Midwest P.C. and intends to announce in the near future what, if any,
additional measures it will undertake.
The preliminary estimate of charges

to be incurred in connection with the
consolidation is about $700,000, including $400,000 of severance charges,
$100,000 of asset impairment charges
and $200,000 in other charges.
I.B.C. further estimated that about
$600,000 of the costs will result in
future cash expenditures. In addition, I.B.C. estimated the payment of
$300,000 in capital expenditures and
accrued expenses will be required to
effect the consolidation.
The company said it is reviewing the possibility of implementing
strategic pricing actions, citing significant increases in production costs
- primarily related to rising ingredient prices (such as flour and sugar)

Cargill appeals canola oil ruling
PORTLAND, ORE. - Cargill has appealed to the U.S. Court of Appeals for the
Federal Court in an attempt to overturn a court ruling made Dec. 20.
A federal judge from the U.S. District Court, District of Oregon, ruled Cargill
withheld information to the U.S. Patent and Trademark Office while pursuing
two patents on canola oils. Cargill provides Clear Valley 75 and Clear Valley 65
Specialty Canola Oil. Cargill had alleged that Dow AgroSciences, L.L.C., and its
customer, Canbra Foods, Ltd., were infringing on Cargill patents by producing
and selling Dow's Natreon canola oil.
Canbra Foods argued the two patents were unenforceable because Cargill
withheld information while obtaining the patents. Michael W. Mosman, U.S.
district judge, agreed with Canbra Foods. In appealing the ruling, Cargill said it
submitted all the relevant data to the U.S. Patent and Trademark Office. MBN

John Stone retiring after 23 years
with Caravan Products
TOTOWA, N.J. - In addition to being presented with a gold watch, John Stone's retirement at Carvan Products Company, Inc. was marked by a gift created by the staff of the
company's baking laboratory.
Mr. Stone is shown holding a
plaque from the lab team featuring a loaf of bread and a bottle
of wine, with Mr. Stone's name
and photograph printed on the
bottle label.
Mr. Stone joined Caravan in
1983 and held various sales positions before he was named national sales manager in 1995. He
was promoted to executive vicepresident in May 2000 and then
to president four months later.
Active in industry affairs, Mr.
Stone has been involved with
the American Society of Bakery
Engineers, the National Flour
Distributors Association, the Allied Trades of the Baking Industry and The American Society
of Baking. MBN
bakingbusiness.com / world-grain.com

and continuing high energy costs.
"Any strategic pricing actions
would be in addition to the company's efforts to reduce costs through
the P.C. review and consolidation process," I.B.C. said. "Increased production costs have had a significant negative effect on the company's operating
margins in recent periods. Any strategic pricing actions, together with the
cost control efforts mentioned above,
would be designed to lessen the impact of the higher production costs on
the company's operating margins. No
assurance can be given that the company will be able to pass along any
portion of the increased production
costs through pricing actions or that
such pricing actions will not have a
negative effect on sales. Further, no
assurance can be given that the P.C.
review and consolidation process
will be successful or aid the company's efforts to offset the increased
production costs." MBN

J.M. Smucker details
plans to buy one
million shares
ORRVILLE, OHIO - The J. M. Smucker Co. has entered into a Rule 10b5-1
trading plan with a broker to facilitate
the repurchase of up to one million
of its common shares under its previously announced share repurchase
authorization.
Rule 10b5-1 allows a company to
purchase its shares at times when it
otherwise might be prevented from
doing so under insider trading laws
or because of self-imposed trading
blackout periods. The shares to be repurchased under the company's 10b51 plan would be part of the share repurchase authorization approved by
the company's board of directors in
January 2006 to repurchase up to two
million of its common shares.
The 10b5-1 share purchase period
began Feb. 27. Purchases will be effected by a broker and will be based
upon the guidelines and parameters
of the 10b5-1 plan. The aggregate
amount of shares purchased pursuant
to the plan will not exceed one million
shares, J.M. Smucker said.
The company said there is no guarantee as to the exact number of shares
that will be repurchased under the
share repurchase program, and the
company may discontinue purchases
at any time. Repurchased shares would
be returned to the status of authorized
but unissued common shares. MBN
Milling & Baking News, March 14, 2006 / 9

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Milling & Baking News - March 14, 2006

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