23rd Jan 2007 07:00
Trading Update for the Year Ending 31 March 2007 Overall trading for the nine months to 31 December 2006 has continued tocomfortably exceed the corresponding period of the prior year, with a strongperformance from both commodity and core value added products. However, it islikely that sales and profits of SPLENDA(R) Sucralose for the year to 31 March2007 will only modestly exceed the prior year due to a slower than anticipatedacceleration of uptake from major customers. SPLENDA(R) Sucralose has seen good demand from the food and still beveragesectors and international expansion is well underway, now that additionalmanufacturing capacity is available. We have an extensive product developmentpipeline with our customers across several markets, although the process ofreformulation is taking longer than expected. Volumes to the US carbonated softdrink sector have not met our expectations this year and additional resourceshave been deployed to address this. As previously stated, Food & Industrial Ingredients, Americas continues toperform strongly. Food & Industrial Ingredients, Europe achieved a satisfactorypricing round for the 2007 calendar year and results for the second half-yearare now expected to be similar to the corresponding period of the prior year,albeit after benefiting from a lower depreciation charge. Sugars, Europe will benegatively impacted by the over supply of sugar in the market, a result of theslow surrender of quota to date. Sugars, Americas and Asia continues to trade inline with our expectations. The lower than expected contribution from SPLENDA(R) Sucralose means that in theyear to 31 March 2007 the growth of value added profits will be significantlybelow the Group's target of 30%. Given this and the impact on overseas earningsof the weakness in the US dollar, Group profit before tax, exceptional items andamortisation for the year to 31 March 2007 is now likely to be modestly belowcurrent market expectations, albeit well ahead of the previous year. A conference call for analysts and investors will be held at 7.45 am today. Thecall will be hosted by Iain Ferguson, Chief Executive, John Nicholas, GroupFinance Director and Mark Robinson, Director of Investor Relations. Participantsare requested to dial in at least 5 minutes before the commencement of the call. \* TDial in details are: Participant dial in number: +44(0)20 7138 0817Replay telephone number: +44(0)20 7806 1970Replay passcode: 450 7789# The replay of this call will be available for 7 days until 30 January 2007. END CONTACTS Mark Robinson, Director of Investor RelationsTel: 020 7626 6525 or Mobile: 07793 515861 Ferne Hudson, Head of Media and Public RelationsTel: 020 7626 6525\* T About Tate & Lyle: Tate & Lyle is a world leading manufacturer of renewable foodand industrial ingredients. It uses innovative technology to transform corn,wheat and sugar into value-added ingredients for customers in the food,beverage, pharmaceutical, cosmetic, paper, packaging and building industries. The Company is a leader in cereal sweeteners and starches, sugar refining, valueadded food and industrial ingredients, and citric acid. Tate & Lyle is the worldnumber-one in industrial starches and is the sole manufacturer of SPLENDA(R)Sucralose. Headquartered in London, Tate & Lyle is listed on the London Stock Exchangeunder the symbol TATE.L. In the US its ADRs trade under TATYY. The Companyoperates more than 65 production facilities in 29 countries, throughout Europe,the Americas and South East Asia. It employs 7,000 people in its subsidiarieswith a further 4,800 employed in joint ventures. Sales in the year to 31 March2006 totalled £3.7 billion. Additional information can be found on this websitewww.tateandlyle.com. SPLENDA(R) and the SPLENDA(R) logo are trademarks of McNeil Nutritionals, LLC Copyright Business Wire 2007Related Shares:
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