Tate & Lyle says earnings are in line despite European weakness

 
City A.M. Reporter
TATE & Lyle said its operating profit for the three months to June was in line with its expectations, as strong demand for its speciality food ingredients from the US and emerging markets offset weaker appetite in Europe.

The London-based group, which makes sucralose zero-calorie sweetener Splenda, said yesterday operating profit in the sucralose division was lower than its expectations due to difficult market conditions in Europe and a strike at its Turkey plant.

Co-products generated a small amount of additional income during the quarter as it had locked in prices at levels marginally higher than those anticipated during the 2012 pricing round, it said.

It said it was not clear how corn price volatility would impact demand for co-product demand and pricing for the rest of the year, but said it would stick to its strategy of maintaining full corn silos in the US to secure supply.

“We continue to expect to make progress this financial year while recognising the current level of uncertainty surrounding the wider economy and volatile corn markets,” said chairman Peter Gershon yesterday.