Tate and Lyle Say Q1 Ahead of Expectations
Tate & Lyle said that it performed better than anticipated during the first quarter of it's financial year, in today's interim management statement.
Profit before tax and exceptional items from continuing operations in the first quarter, after the benefit of favourable exchange translation, was in line with the comparative period and ahead of our expectations. Results have continued to benefit from cost reduction measures taken across the business, it said.
At Food & Industrial Ingredients, Americas, performance was marginally below the level of the comparative period, with lower income from co-product sales partially offset by the favourable impact of exchange translation. Co-product sales remain under pressure from lower cereal prices, reduced demand from the US livestock sector and weaker US export markets, it says.
Meanwhile, at Food & Industrial Ingredients, Europe, profits were above the comparative period and continued to benefit from lower net corn costs.
Sugars performed ahead of expectations, but below the level of the comparative period. As anticipated, profits from molasses were below the exceptional levels achieved in the comparative period, as global cereal prices have reduced from the levels experienced during the second half of calendar year 2008, they droned on.
The strong volume growth seen at Sucralose since the start of the calendar year continued, and the business achieved operating profits ahead of the comparative period. The process of mothballing the sucralose plant in McIntosh, Alabama at a cost of £56 million is proceeding ahead of schedule, they concluded.
Profit before tax and exceptional items from continuing operations in the first quarter, after the benefit of favourable exchange translation, was in line with the comparative period and ahead of our expectations. Results have continued to benefit from cost reduction measures taken across the business, it said.
At Food & Industrial Ingredients, Americas, performance was marginally below the level of the comparative period, with lower income from co-product sales partially offset by the favourable impact of exchange translation. Co-product sales remain under pressure from lower cereal prices, reduced demand from the US livestock sector and weaker US export markets, it says.
Meanwhile, at Food & Industrial Ingredients, Europe, profits were above the comparative period and continued to benefit from lower net corn costs.
Sugars performed ahead of expectations, but below the level of the comparative period. As anticipated, profits from molasses were below the exceptional levels achieved in the comparative period, as global cereal prices have reduced from the levels experienced during the second half of calendar year 2008, they droned on.
The strong volume growth seen at Sucralose since the start of the calendar year continued, and the business achieved operating profits ahead of the comparative period. The process of mothballing the sucralose plant in McIntosh, Alabama at a cost of £56 million is proceeding ahead of schedule, they concluded.
