29th Mar 2007 07:00
Tate & Lyle PLC Trading Update prior to Closed Period Before entering its closed period for the year ending 31 March 2007 and prior tobriefing stockbrokers' analysts, Tate & Lyle issues the following routinetrading update. The preliminary announcement of results for the year ending 31March 2007 will be made on 23 May 2007. TRADING Since the update on 23 January 2007 the Group's overall trading performance hasbeen in line with market expectations and has continued to comfortably exceedthe corresponding period of the prior year. As previously indicated, sales and profits of SPLENDA((R)) Sucralose for theyear to 31 March 2007 are expected to only modestly exceed the prior year. Weare continuing to work with our customers on product innovation and will providean update on our SPLENDA((R)) Sucralose business at our results presentation on23 May 2007. OTHER ITEMS The renunciation of beet sugar quota by Eastern Sugar (announced on 10 October2006) has been formally agreed with the EU restructuring fund and Eastern Sugarwill be treated as a discontinued business in the financial results for the yearending 31 March 2007. Tate & Lyle's share of net cash proceeds from therestructuring fund of approximately £51 million will be payable in twoinstalments in the financial year to 31 March 2009. The net exceptional gain onclosure is estimated at £15 million and will be reported in the year to 31 March2007. Following the decision to cease production of citric acid at the site in Selby,Yorkshire, a fundamental review has been undertaken of the astaxanthin businesscarried on at the same site. Following this review it has been decided to takean impairment charge on our investment in the astaxanthin business. This chargetogether with the closure costs for the citric plant are expected to result inan exceptional charge of approximately £35 million in the year to 31 March 2007. The disposal of Tate & Lyle Canada Ltd (announced on 14 February 2007)("Redpath") remains subject to regulatory approvals. Our expectation remainsthat completion will take place early in the next financial year and will resultin an exceptional gain of approximately £50 million in the year ending 31 March2008. Redpath will be treated as a discontinued business in the financialresults for the year ending 31 March 2007. We continue to make progress in exploring the possible full or partial disposalof Food & Industrial Ingredients, Europe (announced on 25 October 2006). Afurther update is planned within the next few weeks. A conference call for analysts and investors will be held at 8.30am today. Thecall will be hosted by John Nicholas, Group Finance Director and Mark Robinson,Director of Investor Relations. Participants are requested to dial in at least 5minutes before the commencement of the call. Dial in details are: \* TParticipant dial in number: +44(0) 20 7138 0817Replay telephone number: +44(0) 20 7806 1970Replay passcode: 1400984#\* T The replay of this call will be available for 7 days until 4 April 2007. \* TCONTACTSMark Robinson, Director of Investor RelationsTel: 020 7626 6525 or Mobile: 07793 515861 Ferne Hudson, Head of Media and Public RelationsTel: 020 7626 6525 or Mobile: 07713 067433\* 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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