Tasty Baking Co. (NASDAQ:TSTY), the Philadelphia-based maker of Tastykakes and Krumpets, reported a loss for its second quarter of $3.3 million due to special charges incurred during the year.
The company reported losses of $3,334,000 for the quarter, compared to a net income of $2,345,000, or 27 cents per share last year. Although the company was contending with several charges related to new production facilities, sales were also down 6% from last year, from $78,532,000 to $73,589,000.
The company has recently transitioned to a new facility in Navy Yard, as the cost of maintaining two facilities was costing roughly $5.1 million pre-tax per year.
“The second quarter of 2010 proved to be a challenging period for us in terms of top-line performance as well as the transition to the Navy Yard facility,” said Charles Pizzi, CEO of Tasty Baking in a company release.
Pizzi said the company plans to rebound with new packaging and products, and well as an expansion of territories.