Interstate Bakeries issues profit Warning

Interstate Bakeries, the largest wholesale baker in the US, has said that weak sales, high product returns and escalating energy costs would cut its expected profit.

Interstate Bakeries, the largest wholesale baker in the US, has said that weak sales, high product returns and escalating energy costs would cut its expected profit - according to an Associated Press report.

The bakery company said that as a result of the profit shortfall, it has begun to close 100 underperforming thrift stores. The company did not mention how many jobs are threatened.

The company expects to report a loss for the fiscal third quarter ending March 8, but anticipates a profit in the fourth quarter.

Analysts had predicted improved results for the third and fourth quarters, but are now expected to reassess those expectations.